Relais' CEO is retiring

Translation: Original published in Finnish on 06/04/2025 at 09:27 am EEST

Relais announced yesterday that its long-term CEO, Arni Ekholm, will retire on March 31, 2026. The Board said it has initiated the search process for a successor.  Since its listing, Relais has developed from a company consolidating wholesale operations into a group offering maintenance and repair services for commercial vehicles. As a serial consolidator, Relais now has a solid foundation to continue directing its operating cash flow to strategic acquisitions. In the big picture, the business realignment and the Ekholm era have been successful, considering the total return of Relais' share during its time as a listed company (15.6% p.a. or 127% since listing vs.  OMXH25 ~7% p.a.), even though valuation multiples for the next few years have been declining during the time as a listed company. In our view, combining the spare parts business with the maintenance business has also generated certain synergies, even though in Relais' model, subsidiaries operate as very independent units. Overall, the business model has also demonstrated commendable defensiveness in the volatile business environment of recent years. 

Relais' strategy period is coming to an end, and atypically for listed companies in recent years, the company's long-term targets are still within its reach. We believe that the end of the strategy period creates a natural time for a change of CEO. In our view, experience in M&A transactions, capital allocation, and developing the business model of a serial consolidator are key in the CEO selection. We believe Relais is in a good position to find a qualified successor. This is supported by the company's commendable recent business development and clear business model, which provide a good basis for value creation in the next strategy period.