Harvia to pay additional purchase price of the Kirami acquisition in advance

Harvia Plc                                      Stock exchange release            December 21, 2023 at 4.00 P.M. EET

Harvia Plc announced on 28 May 2021 that it had signed an agreement to acquire Kirami Oy. The acquisition complemented Harvia’s sauna and spa offering well with Scandinavian hot tubs and strengthened Harvia’s leading position as a global sauna and spa experience brand.

The original purchase price was EUR 7 million at closing and on top of this, a delayed purchase price of EUR 0–4 million after a three years’ period based on Kirami’s EBITDA development. Harvia and the sellers of Kirami have agreed that Harvia will pay the additional purchase price of EUR 2.5 million earlier than previously announced, on 21 December 2023.

Paying the additional purchase price in advance enables closer integration of Kirami into Harvia’s other business operations in conjunction with the reorganization of Harvia’s organizational structure. Harvia announced on 17 October 2023 that it will change its organizational structure as of 1 January 2024 by, for example, dividing its business operations into four geographical sales regions and five Group functions. The new organizational structure will, among other things, increase Harvia’s customer and market orientation and drive the company’s organic growth.

Harvia will finance the payment of the additional purchase price with cash funds. The paid amount is approximately EUR 1.2 million smaller than the provision Harvia made in connection with the acquisition. This difference will improve Harvia’s 2023 result, and it will be presented as changes in the fair value of financial items in the income statement.

HARVIA PLC

Ari Vesterinen
CFO

Further information:

Matias Järnefelt, CEO, tel. +358 40 5056 080
Ari Vesterinen, CFO, tel. +358 40 5050 440

Harvia is one of the leading companies operating in the sauna and spa market globally, as measured by revenue. Harvia’s brands and product portfolio are well known in the market, and the company’s comprehensive product portfolio strives to meet the needs of the international sauna and spa market of both private and professional customers.

Harvia’s revenue totaled EUR 172.4 million in 2022. Harvia Group employs approximately 600 professionals in Finland, Germany, United States, Romania, China and Hong Kong, Austria, Italy, Estonia, and Sweden. The company is headquartered in Muurame, Finland, adjacent to its largest sauna and sauna component manufacturing facility.

Read more: https://harviagroup.com