Translation: Original published in Finnish on 06/30/2026 at 08:45 am EEST

Auroora Group announced that they will acquire the entire share capital of Suomen Teknohaus Oy. The acquired company is an expert in industrial specialty piping and cutting systems We believe the target, with revenue of around 7 MEUR, is a logical addition and typical in size for Auroora. We consider the move an expected and consistent step in the company's execution of its compounder strategy.

Strengthening the most profitable business segment

Established in 1987, Suomen Teknohaus supplies specialty gas piping systems, orbital welding equipment, and plasma and oxyfuel cutting machines for demanding industrial applications. The company employs 27 people and has a revenue of around 7 MEUR, so the acquisition will have a positive impact of around 3% on Auroora's annual revenue. We will add the transaction to our estimates at the latest in connection with the Q2 results.

The acquired company will be integrated into Auroora's Industrial Products and Services segment, which has historically been the group's most profitable business area with an EBITA margin exceeding 10%. In the last financial year, Suomen Teknohaus Oy's EBIT was around 1.1 MEUR, so the acquisition target clearly exceeds Auroora's profitability criterion for its acquisition targets (EBITA over 10%). The company did not disclose the purchase price in the release, but we assume the multiples also align with the company's strict acquisition criteria (EV/EBITDA 4–8x and return on invested capital over 15%).

A consistent step in allocating IPO funds

At the core of Auroora's compounder strategy is the allocation of net proceeds from the IPO and free cash flow generated by the business to new acquisitions. Suomen Teknohaus's size falls within the company's target revenue range of 1–20 MEUR, and the business appears to be of high quality. Therefore, we consider the arrangement a consistent step in implementing Auroora's compounder strategy. In line with Auroora's operating model, the CEO of the acquired company will continue in their position, which is a typical and, in our opinion, viable way to ensure business continuity and retain expertise within the company.