Relais: Bolt-on acquisition in Denmark - Nordea

Relais has today acquired Danish company S-E-T A/S, wholesaler of electrical equipment, such as rear-view and side-view cameras, inverters and battery chargers for heavy commercial vehicles and the marine sector. In 2021 (based on Danish GAAP), S-E-T had DKK 29.7m (DKK 27.6m in 2020) sales with DKK 8m EBIT (DKK 6.3m adjusted EBIT in 2020). Purchase price of DKK 41.6m corresponds to 5.1x EV/EBIT (2021). Following the acquisition, Relais’ foothold in the Danish market will be strengthened and S-E-T complements the customer offering of SEC Scandinavia. In addition, Relais sees significant synergy potential in combining the operations of SEC Scandinania and S-E-T. Encouraging to see M&A activity pick up despite volatile market conditions, combined with acquisition multiples well in line with earlier acquisitions although S-E-T commands clearly higher margins in comparison to Relais. We have a fair value range of EUR 15.7-19.2 per Relais share.

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