NoHo: Acquires three restaurants in Norway - Nordea

NoHo acquires three restaurant in Oslo, Norway. Aggregated purchase price for all businesses is EUR 4.9m, of which approximately EUR 2m is paid in cash and EUR 1.4m remains as an interest bearing debt which shall be paid after six years. The rest of the purchase price is paid with new shares (169k with EUR 8.75 subscription price). We view acquisition to be in line with NoHo strategy and the company has noted its willingness to increase its Norwegian exposure through acquisitions. Based on earlier transactions, we believe EV/EBITDA multiple of the transaction to be between 4-5x which could indicate above EUR 10m positive top line (~2% of 2024E sales) and above EUR 1m positive EBITDA (~2% of 2024 operational EBITDA) impact on group level. In addition, NoHo is likely benefiting from rolling in its sourcing deals, which have traditionally lowered realized acquisition multiples by 1-2x. NoHo will report its Q3 on 7 November. We are 2% below post-Q2 Vara consensus on top line and 10% below on reported EBIT. However, we note our assumption of EUR 2m non-recurring costs related to incorporation of Better Burger Society and the acquisition of Holy Cow!, while we do not know how much of this is taken into consideration in consensus estimate. For 2024E-25E, we are 6-7% above consensus on EBIT.

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