HANZA Acquires Leden, Boosting its Advanced Mechanics Manufacturing
Deal News | Dec 12, 2024 | PR Newswire Cision HANZA AB
HANZA AB, a Swedish company, has announced its acquisition of Leden Group, a Finnish contract manufacturer in advanced mechanics, with an annual turnover of SEK 1.1 billion. This strategic acquisition aligns with HANZA's 2025 strategy and enhances its manufacturing cluster in Finland and the Baltics. Leden Group specializes in sheet metal, machining, and complex assembly and holds a strong market position with a diverse customer base in sectors such as power management and medical technology. The transaction involves acquiring 100% of Leden's shares, with a purchase price based on an EBITA multiple of 7. The payment includes a cash portion of EUR 21 million and shares in HANZA valued at EUR 14 million. Future potential increases in the purchase price depend on Leden's performance and HANZA's share price progression in 2025. The acquisition, expected to conclude in Q1 2025, is integral to HANZA's operational plans, seeking SEK 6.5 billion in sales by 2025. Advisors for HANZA in this transaction include Pareto Securities as financial advisors and Advokatfirman Lindahl as legal advisors.
Sectors
- Advanced Manufacturing
- Metal Fabrication
- Mergers and Acquisitions
Geography
- Sweden – Relevant as the acquiring company HANZA is based in Sweden.
- Finland – Pertinent because Leden Group, the target company, is based in Finland.
- Estonia – Included as Leden Group has production facilities in Estonia.
Industry
- Advanced Manufacturing – The industry involves the use of innovative technologies and methodologies for manufacturing products, which is relevant because the article discusses the acquisition of Leden, a company specializing in advanced mechanics manufacturing.
- Metal Fabrication – Pertains to companies involved in various metalworking processes such as machining and assembly, which aligns with Leden Group's business operations.
- Mergers and Acquisitions – Concerns the consolidation of companies or assets, fitting as the article discusses HANZA's acquisition of Leden Group.
Financials
- SEK 1.1 billion – Approximate turnover of Leden Group.
- EUR 21 million – Cash portion of the purchase price paid by HANZA.
- EUR 14 million – Value of shares in HANZA issued to partly pay the purchase price.
- 5% – Dilution in HANZA shares due to the acquisition.
- EUR 15 million – Potential increase in purchase price depending on earnings performance.
- EV/EBITA multiple of 7 or less – Multiple at which the acquisition was valued.
- SEK 6.5 billion – HANZA's financial target for 2025 in sales.
- 8% – HANZA's targeted operating margin by 2025.
Participants
| Name | Role | Type | Description |
|---|---|---|---|
| HANZA AB | Acquiring Company | Company | A Swedish company involved in advanced manufacturing and strategic acquisitions. |
| Leden Group | Target Company | Company | A Finnish company specializing in contract manufacturing in advanced mechanics with various production sites. |
| Erik Stenfors | CEO of HANZA | Person | Leading the acquiring company HANZA and commenting on the strategic acquisition. |
| Jukka Haapalainen | CEO of Leden | Person | CEO of Leden Group, welcoming the acquisition as a growth opportunity. |
| Pareto Securities AB | Financial Advisor | Company | Advised HANZA on financial aspects of the acquisition. |
| Advokatfirman Lindahl | Legal Advisor | Company | Provided legal advisory services to HANZA for the acquisition. |