Boreo: Bolt-on acquisitions support 2023 development - Nordea

Boreo has conducted three acquisitions since its Q3 report, with aggregated net sales of EUR 6m and EBITDA of EUR 1.1m in FY 2021. Of the two larger acquisitions, we view Filterit as an interesting strategic addition, which could open up new M&A opportunities within filtration. Although the company is within its leverage target and has hedged its loan portfolio, we believe it will conduct only smaller bolt-on acquisitions in 2023 and focus on more efficient allocation of capital through lower inventories. Despite a sluggish macro outlook, good order backlog should support Boreo's businesses, at least in H1 2023. Based on underlying operations and M&A value-creation opportunities, we derive a fair value range of EUR 42-49 (41-48) per Boreo share. Marketing material commissioned by Boreo.

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