Boreo: Strengthens Technical Trade through M&A - Nordea

Boreo announced today a bolt-on acquisition to strengthen its Technical Trade business area. The company acquired J-Matic and J-Matic Rent, an industrial manufacturing service company that is focused on box-build assemblies. The Company delivers technically demanding turnkey solutions to its customers that have leading market positions within their own industries. Delivered turnkey solutions typically include mechanic-, electronic-, pneumatic- and automation applications. J-Matic has 20 employees with operations located in Lempäälä, Finland. In 2021, J-Matic had illustrative net sales of EUR 2.3m with EBITDA of EUR 0.6m, corresponding to a 24% EBITDA margin. In 2019-21, J-Matic had ~16% sales CAGR. Purchase price is not disclosed, while Boreo issued 5k shares (EUR 0.2m) to the seller. We believe the total consideration is EUR 1.5-2m, while Boreo may pay earn-outs subject to the results of J-Matic in 2023-25. J-Matic continues to operate independently and will be reported under Technical Trade business area. We find it encouraging that the company continues with bolt-on acquisitions that have above the group margins.

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