Inside information: Wetteri Plc sells Wetteri Power Oy to Swedish Persson Invest AB, purchase price approx. EUR 32.5 million
The transaction strengthens the Group's financial position significantly
Wetteri Plc Insider information 21 November 2024 at 14.00
Automotive growth company Wetteri Plc sells its subsidiary Wetteri Power Oy to Swedish Persson Invest Ab. Closing is expected to occur approx. on 31 December 2024. Transaction price is app. EUR 32,5 million, depending on e.g. Wetteri Power Oy's result in 2025.
Following the transaction, Wetteri will continue its used truck sales, bodywork business, and existing maintenance and repair operations for brands other than Volvo and Renault.
Wetteri Group’s ability to invest in growth strengthens significantly through this transaction. The current acquisition strengthens the company's equity and provides excellent opportunities to invest in the development and growth of both the passenger car business and the heavy equipment business.
In the future, the items in Wetteri Power Oy's income statement will be presented in the Group's financial reporting as part of the result of the Group's discontinued operations separately from the result of the Group's continuing operations. The financial information for the comparison period will also be adjusted accordingly.
The transaction has no impact on Wetteri's 2024 financial guidance, which includes revenue and adjusted profit combined from continuing and discontinued operations.
Aarne Simula, CEO & President, Wetteri Plc:
" This transaction is very positive for Wetteri's shareholders. The acquisition significantly strengthens Wetteri's balance sheet as well as its ability to execute strategic acquisitions and thus provides excellent support for the company's growth strategy. Profitable growth also opens opportunities to pay dividends in the future.
The automotive industry is going through a historical transformation and the operations will be focused on a few big players. Our goal is to grow into Finland's largest full-service multi-brand car company, and this transaction takes us towards this goal. We see that now is the right time to invest in the growth of the passenger car business.
We will continue to develop the heavy equipment business, for which we have excellent prerequisites thanks to this transaction. We have a strong position in the used truck trade and expanded our business by starting to import earthmoving machinery. Truck maintenance will continue with five brands.”
We estimate that the impact of this transaction on Wetteri's net sales and profit will be quite short-lived, new growth will arise from new passenger car brand representatives and market growth.”
Persson Invest Ab is one of the largest companies operating with Volvo trucks and buses in the Nordic countries, and operates in both Sweden and Norway. The company employs about 1400 people.
Björn Rentzhog, Group CEO Persson Invest AB
"The acquisition of Wetteri Power enables us to enter the Finnish market immediately on a significant scale. We have been following Power for a long time and are familiar with its high-quality way of working. We look forward to learning more about Power's operations, customers and staff and sharing good practices on both sides.”
Terms of transaction
The purchase price consists of a base price of EUR 27.0 million, adjusted based on Wetteri Power Oy's net profit for 2024, and an earn-out component based on EBITDA for 2025, which can either increase or decrease the base price by up to EUR 5.5 million. The company estimates the total purchase price to be approximately EUR 32.5 million. The base price, including adjustments, will be paid at the time of the transaction, and the additional earn-out component is expected to be paid during Q2/2026.
As part of the transaction, it has been agreed that Wetteri Group will continue to provide Wetteri Power's administrative services in the future.
Information about Wetteri Power Oy’s business
Wetteri Power Oy is one of the largest operators in the industry in Finland, selling and servicing Volvo and Renault trucks in five locations. Wetteri Power's (FAS-compliant) revenue was EUR 73.8 million in 2023. Wetteri Power's FAS-compliant operating profit was EUR 2.9 million in 2023. FAS-compliant revenue in January-June 2024 was EUR 33.6 million and operating profit EUR 1.0 million. Wetteri Power employs 150 people and all employment relationships will continue with the transaction.
| Wetteri Power Oy (FAS) | 2024 H1 | 2023 | 2022 |
| Income statement, EUR thousand | unaudited | audited | audited |
| Revenue | 33 581 | 73 797 | 77 474 |
| Operating profit (loss) | 988 | 2 893 | 2 460 |
| Profit before appropriations and taxes | 1 469 | 3 563 | 2 405 |
| Profit for the period | -5 | 69 | 1 234 |
| 2024 H1 | 2023 | 2022 | |
| Balance sheet, EUR thousand | unaudited | audited | audited |
| Non-current assets | 1 322 | 1 424 | 988 |
| Inventories | 5 890 | 7 067 | 6 329 |
| Current receivables | 12 164 | 9 621 | 7 788 |
| Cash in hand and at bank | 81 | 10 | 72 |
| Total assets | 19 457 | 18 122 | 15 178 |
| Equity | 9 960 | 9 965 | 9 896 |
| Long-term liabilities | 0 | 0 | 1 |
| Short-term liabilities | 9 497 | 8 157 | 5 280 |
| Total equity and liabilities | 19 457 | 18 122 | 15 178 |
More information
Aarne Simula, CEO and President, Wetteri Plc:
Tel. +358 400 689 613, [email protected]
Wetteri Plc – an entrepreneur-driven growth company in the automotive sector
Wetteri Plc is an entrepreneur-driven growth company in the automotive sector. The company engages in the retail sales of passenger cars, commercial vehicles and heavy vehicles, and produces maintenance and repair shop services for vehicles, from passenger cars to heavy vehicles. Headquartered in Oulu, the company has 50 locations in Finland. The company employs app. 1,000 people, of whom around 76% work in maintenance and repair services. Wetteri promotes digitalisation in the automotive sector and is an important player on the common journey towards emission-free motoring. More information: sijoittajat.wetteri.fi/en/