Brief: Ferronordic Entered Into An Agreement To Purchase Rudd Equipment Company

Ferronordic AB

13/11/2023 21:43

Nov 13 (Reuters) - Ferronordic Ab  FNMA.ST :
    * FERRONORDIC EXPANDS TO THE USA - ACQUIRES ONE OF THE
COUNTRY'S
LARGEST VOLVO CONSTRUCTION EQUIPMENT DEALERS
    * FERRONORDIC EXPANDS TO THE USA - ACQUIRES ONE OF THE
COUNTRY'S
LARGEST VOLVO CONSTRUCTION EQUIPMENT DEALERS
    * PURCHASE PRICE AMOUNTS TO USD 95.0M, CORRESPONDING TO 5.8
X 2022
ADJUSTED EARNINGS BEFORE TAX
    * ENTERED INTO AN AGREEMENT TO PURCHASE RUDD EQUIPMENT
COMPANY,
INC
    * IN ADDITION, FERRONORDIC ACQUIRES TWO REAL PROPERTIES FOR
USD
10M, CURRENTLY RENTED BY RUDD
    * FERRONORDIC EXPECTS RUDD TO GENERATE POSITIVE EARNINGS AND
CASH
FLOWS IMMEDIATELY FROM CLOSING
    * TOTAL PRICE FOR STOCK IN RUDD AND TWO PROPERTIES AMOUNTS
TO USD
105M
    * TRANSACTION IS NOT EXPECTED TO HAVE ANY DIRECT IMPACT ON
FERRONORDIC'S BUSINESS IN GERMANY AND KAZAKHSTAN
    * OUT OF USD 105M, USD 60M WILL BE FINANCED WITH OWN
CASH/EQUITY
AND USD 45M WITH NEW BANK DEBT

Source text for Eikon:  ID:nWkrbBRX5D 
Further company coverage:  FNMA.ST 

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