Hiab jumps as $1 bln Labrie deal seen boosting earnings
BUZZ- Hiab jumps as $1 bln Labrie deal seen boosting earnings Tweaks headline, adds analyst comments in bullets 3-5
** Shares in Hiab HIAB.HE jump 7% after the Finnish on-road load-handling equipment maker agreed to buy Canadian garbage truck company Labrie, with analysts citing strong fit, earnings upside and attractive valuation
** The group expects the $1.035 billion deal to immediately strengthen cash generation once completed and has secured financing for the deal from Danske Bank and OP Corporate Bank
** "Labrie complements Hiab's current portfolio very well and expands the company's footprint in waste & recycling but also in the strategically important North American market," senior analyst Jussi Mikkonen from OP Financial Group says
** Handelsbanken analyst Timo Heinonen says the deal is EPS accretive, with last-12-month proforma EPS up 26%, and sees Labrie's valuation as attractive versus Hiab's multiples
** "Hiab has had a large net cash position, and maybe an even too strong balance sheet for the longer run so now this capital is put to productive use," Mikkonen adds
** The stock enjoys its best day in a month and is the second best performer on pan-European STOXX 600 .STOXX index
(Reporting by Izabela Niemiec)