Dan’s Biz Bookshelf: ‘Brand Hijack: Marketing Without Marketing’
Happy’s Tech Talk #35: Yields March to Design Rules
The Power of Consistency: Showing Up Every Day is Half the Battle
HANZA Acquires Leden
December 13, 2024 | HANZAEstimated reading time: 2 minutes
HANZA AB has signed an agreement to acquire Leden Group, a leading Finnish company in advanced mechanics manufacturing with a turnover of approximately SEK 1,1 billion. The acqusition strengthens HANZA's manufacturing cluster and is an important step in the HANZA 2025 strategy.
Leden Group is a contract manufacturer in sheet metal, machining and complex assembly with four production sites in Finland and one in Estonia. The business also includes import, processing and selling of sheet metal and manufacturing of own steel profiles. The company has a strong market position with a diversified customer base from industries such as power management, medical technology, IT infrastructure and industrial automation.
With this acquisition, HANZA is expanding its offering in Finland in particular, but also in the Baltics. Among other things, this means increased capacity and expertise in advanced mechanics manufacturing.
Summary of the transaction
- The acquisition includes 100% of the shares in Leden Group Oy.
- The purchase price is based on a multiple of 7 for the EBITA outcome 2025 on a cash and debt-free basis. The purchase price consists of a combination of cash and new shares in HANZA, which gives the sellers the opportunity to participate in HANZA's future value development.
- At closing, a purchase price is paid consisting of:
- A cash portion of EUR 21 million
- 2,300,000 issued shares in HANZA, valued at EUR 14 million, approximately SEK 70 per share. This corresponds to a dilution of approximately 5%.
- The purchase price may increase by a maximum of EUR 15 million, dependent on Leden’s earnings development during 2025. The share portion may also increase by 300,000 shares, dependent on HANZA’s share price development in 2025.
- All issued shares in HANZA are subject to lock-up clauses.
- The cash portion of the purchase price is fully financed through credit facilities and existing cash.
- The maximum purchase price corresponds to an EV/EBITA multiple of 7 or less on a cash and debt-free basis.
Management comments
"The acquisition of Leden is an important step in achieving our goals under our strategy, HANZA 2025", says Erik Stenfors, CEO HANZA. "With Ledens strong market position and technological expertise, we are significantly strengthening our offer."
”We look forward to being an important part of HANZA”, says Jukka Haapalainen, CEO Leden. ”We share the same values and see great opportunities for even faster profitable growth thanks to HANZAs unique concept in contract manufacturing.”
About the future
The acquisition is expected to be concluded in the first quarter of 2025, following regulatory approvals.
The acquisition is an important part of HANZAs operational plan HANZA 2025.
HANZA reiterates its financial targets for 2025, including SEK 6.5 billion in sales and an operating margin of 8%.
Share on:
Suggested Items
Mobile Robots Set to Reach 2.8 Million Shipments by 2030 as Applications Expand Across Industries
12/13/2024 | ABI ResearchMobile robot shipments will remain the highest across all robot form factors. ABI Research, a global technology intelligence firm, forecasts shipments to grow from 547,000 units in 2023 to 2.79 million by 2030, a CAGR of 24.1%.
Global Semiconductor Market to Grow by 15% in 2025, Driven by AI
12/13/2024 | IDCThe global demand for artificial intelligence (AI) and high-performance computing (HPC) will continue to rise, growing by over 15% in 2025, according to IDC ’s latest Worldwide Semiconductor Technology Supply Chain Intelligence report. Major application markets, ranging from cloud data centers to specific industry segments, are expected to undergo upgrades, heralding a new boom for the semiconductor industry.
GPV Completes Factory Re-Layout in Thailand
12/12/2024 | GPVIn mid-December 2024, our team in Thailand completed the re-layout activities of our refurbished, former mechanics factory in Thailand. The electronics factory is now 22,000 sqm.
How Printed Circuit Boards Power Our Everyday Gadgets
12/12/2024 | PRNewswireAccording to the latest study from BCC Research, the demand for Printed Circuit Boards: Technologies and Global Markets was valued at $67.9 billion in 2023 and is projected to grow from $70.9 billion in 2024 to $92.4 billion by the end of 2029, at a compound annual growth rate (CAGR) of 5.4% from 2024 through 2029.
Battery Prices Stabilize in November, Slight Increase Expected in 2025
12/12/2024 | TrendForceTrendForce’s latest research reveals that China's EV sales continued to grow throughout November 2024, driving demand for EV batteries. LFP battery prices remained stable, while prices for ternary batteries saw a slight decline.