Ferronordic: Major acquisition of US-based VCE dealer - ABG

Acquires US-based VCE dealer Rudd (+124% to PF'23e sales)
6.8x acquisition EV/EBIT, PF'23e EV/EBIT goes to 10.6x
Marks a return to profitability for Ferronordic


Acquires US-based VCE dealer Rudd, +124% to PF'23e sales

Ferronordic has acquired US-based Volvo CE (VCE) dealer Rudd, adding 124% to PF'23e sales (on a USD/SEK rate of 10.86), and taking PF'23e EBIT to +145m (current estimate -34m). Rudd is one of VCE's largest US dealers, active in 9 states, with '22 revenues of USD 308m (8% '19-'22 sales CAGR) and EBIT of USD 16.5m (5.4% margin), of which 70% is from VCE and remaining from other brands (Hitachi, Sandvik, and Link-Belt).

Länk till analysen i sin helhet: https://cr.abgsc.com/foretag/ferronordic/Equity-research/2023/11/ferronordic---major-acquisition-of-us-based-vce-dealer/