Brief: Beijer Ref Enters North American Market Through Transformative Acquisition Of Heritage Distribution

Beijer Ref AB (publ)

15/12/2022 08:03

Dec 15 (Reuters) - Beijer Ref AB (publ)  BEIJb.ST :
    * BEIJER REF ENTERS THE NORTH AMERICAN MARKET THROUGH THE
TRANSFORMATIVE ACQUISITION OF HERITAGE DISTRIBUTION
    * PURCHASE PRICE OF USD 1,275 MILLION1 (USD 1,175 MILLION
EXCLUDING NET PRESENT VALUE OF TAX BENEFITS)
    * BEIJER REF AND GRYPHON INVESTORS HAVE SIGNED A BINDING
AGREEMENT
WHEREBY BEIJER REF WILL ACQUIRE HERITAGE DISTRIBUTION
    * ACQUISITION IS FINANCIALLY COMPELLING AND BEIJER REF
EXPECTS IT
TO BE EPS ACCRETIVE IN 2023 AND ACCRETIVE TO BEIJER REF'S
ORGANIC SALES GROWTH AND EBITDA MARGIN
    * ACQUISITION IS FULLY FINANCED THROUGH A BRIDGE FACILITY
PROVIDED
BY HANDELSBANKEN AND NORDEA
    * INTENDS TO REPAY BRIDGE FACILITY WITH PROCEEDS FROM A
FULLY
UNDERWRITTEN RIGHTS ISSUE OF CLASS B SHARES AMOUNTING TO
APPROXIMATELY SEK 14 BILLION
    * ACQUISITION IS CONDITIONAL UPON REGULATORY APPROVALS AND
CUSTOMARY CLOSING CONDITIONS AND IS EXPECTED TO CLOSE EARLY IN
Q1 2023
    * HERITAGE DISTRIBUTION IS A LEADING DISTRIBUTION CO FOR
HEATING
VENTILATION AIR CONDITIONING AND REFRIGERATION EQUIPMENT, PARTS
AND SUPPLIES IN NORTH AMERICA
    * EXPECTS ACQUISITION OF HERITAGE DISTRIBUTION TO BE
ACCRETIVE TO
BEIJER REF'S EBITDA MARGIN AND ORGANIC SALES GROWTH

Source text for Eikon:  ID:nWkr4Pv8mS 
Further company coverage:  BEIJb.ST 
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