PION Group: Executing on new strategy via M&A - ABG

Acquires Dreamwork Scandinavia ABAdds 7% on '23e sales and 9% on EBIT, all else equalSees that its digital competence will benefit whole groupDreamwork will add SEK 160m in sales and 5m in EBITAOn Monday PION group announced that it will acquire Dreamwork Scandinavia AB and its subsidiary Lisberg Executive Search. Dreamwork has extensive experience of consulting, recruitment and executive search. It also has exposure to the staffing market, mainly within industry- and warehouse personnel. The company was established in 2006 and holds a strong market position in the southern part of Sweden. In 2022 PION Group expects it to have sales of SEK 160m with an EBIT margin of close to 5%. In terms of competence, its digitalisation offering (marketing automation, and re-targeting for example) is seen as a core strength that will benefit PION Group in the future through up-selling potential. There should also be some cost synergies from economies of scale when it comes to office costs, for example. The M&A contribution will be split between the business areas Poolia and Uniflex, where the contribution to Poolia will be larger than the contribution to Uniflex.Deal price of SEK 45m, SEK 12m to be settled in sharesDreamwork will be consolidated into PION Group on January 3, 2023 and the acquisition price is SEK 45m. SEK 12m of that will be settled in shares at an agreed price per share of SEK 11.58. The deal should add roughly 7% on our '23e sales estimates and 9% on EBITA, all else equal. The acquisition price equals an EV/EBIT multiple of roughly 6x.New strategy included M&A contribution of SEK 500m until 2026Pion Group communicated a new strategy in conjunction with its CMD in August where it aims to double the size of the company (in reported sales) between 2022 and 2026. That is aimed to be achieved via an organic sales contribution of SEK 1,000m, an M&A contribution of SEK 500m, and a contribution from business models of SEK 500m. This acquisition kick-starts th... Läs mer på ABG Sundal Collier