Relais Group Expands Its Nordic Reach
Relais Group Plc has taken a significant step by acquiring Team Verksted Holding AS, a move that enhances its status as a prominent operator of independent commercial vehicle workshop chains in the Nordic region. This strategic acquisition allows Relais Group to bolster its network across Finland, Norway, and Sweden, offering a unique value proposition to its fleet customers and transport operators.
The Acquisition Details
Under the agreement, Relais Group is set to acquire 100% of Team Verksted Holding AS's shares from Vy Buss AS. Team Verksted Holdings encompasses Team Verksted AS, a well-established nationwide workshop chain, and Lastvagnsdelar AS, a leading distributor of heavy spare parts. With 24 workshops—21 owned and three franchised—Team Verksted is a key player in the Norwegian market.
Growth Opportunities and Synergies
Team Verksted Holding generated a consolidated revenue of approximately NOK 834 million in the previous year, highlighting a robust business model. The acquisition is expected to unlock significant synergies estimated at NOK 30 million annually. These efficiencies will primarily be realized through the sharing of operational best practices and optimized procurement strategies.
Leadership’s Perspective on the Acquisition
Arni Ekholm, the CEO of Relais Group, described the acquisition as transformative. He emphasized that this is just the second strategic acquisition made in a year, with another deal involving the Matro Group. Upon completion of these acquisitions, the group anticipates an added annual IFRS EBITA of approximately 9 million euros, demonstrating how this expansion will amplify their market position and competitive edge.
Enhancing Customer Service
Jan Popov, the Managing Director for Relais Group's Commercial Vehicle Repair and Maintenance sector, noted that Team Verksted aligns perfectly with Relais Group's operational goals and cultural values. By merging the strengths of Team Verksted with Relais Group’s capabilities, they aim to create the most formidable independent workshop network for heavy commercial vehicles across the Nordic countries.
Integration and Spare Parts Operations
Meanwhile, Juan Garcia, Managing Director responsible for Technical Wholesale, remarked that the acquisition enhances their spare parts operations by integrating Lastvagnsdelar's expertise. With an expanded distribution capability, Relais Group can deliver exceptional service to both commercial customers and fleet operators while unlocking synergies within its existing operations.
Financial Insights
The enterprise value agreed upon for Team Verksted Holding is NOK 400 million, excluding any leasing liabilities. The acquisition will be financed primarily through a bridge financing facility backed by Relais Group's main bank. This bridge facility will provide the necessary cash flow until permanent financing solutions, either through equity-like instruments or from capital markets, can be arranged.
Relais Group anticipates closing the acquisition by June, pending necessary approvals and routine conditions being met. This move is part of a broader growth strategy aimed at consolidating their position in the longstanding market.
About Relais Group
Relais Group specializes in consolidating vehicle aftermarket services throughout the Nordic and Baltic regions. With an eye toward profitable growth, the company continuously seeks opportunities for targeted acquisitions that align with its growth strategies. With a dedicated workforce of approximately 1,300 professionals across six countries, Relais Group is committed to finding the right strategic fit for its expanding portfolio.
Frequently Asked Questions
What does the acquisition of Team Verksted mean for Relais Group?
It significantly expands Relais Group's commercial vehicle workshop network and opens up new operational synergies.
How many workshops does Team Verksted operate?
Team Verksted operates 24 workshops in Norway, including both owned and franchised locations.
What is the expected financial impact of the acquisition?
Relais Group anticipates an incremental annual IFRS EBITA of approximately 9 million euros following the acquisition.
How will the acquisition be financed?
The acquisition will be financed through cash drawn from a bridge financing facility and potentially through equity market financing.
When is the acquisition expected to be completed?
The closing of the acquisition is estimated for June, subject to regulatory approvals.
