HANZA Acquires Leden Group to Strengthen Manufacturing Capabilities in Finland and the Baltics

https://cdn.pcbdirectory.com/news/Untitled_design_9__638700064623114887.png712370

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 acquisition 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 the import, processing, and selling of sheet metal and the manufacturing of its 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 allows the sellers 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 of HANZA. "With Leden's 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.”

Click here to learn more about HANZA.