Relais' subsidiary made a small acquisition in Sweden

Translation: Original published in Finnish on 07/02/2025 at 08:06 am EEST

Relais' Swedish subsidiary AB Reservdelar, which focuses on spare parts for commercial vehicles and passenger cars, has made a small complementary acquisition in Sweden. The acquisition target is a local distributor of vehicle spare parts, tools, and accessories, Autodelar Sweden AB, located in Borlänge and Falun. At the time of the transaction, the target company had 9 employees and its previous year's revenue was 28.4 MSEK (2.5 MEUR). The target's headcount and revenue level correspond to less than 1% of Relais group's size, so the transaction is very small relative to Relais' size. The acquisition target will be consolidated into Relais Group from the beginning of July 2025.

The purchase price was not disclosed in the release, but given Relais' disciplined M&A execution and the small deal size, we consider a favorable purchase price likely (around 5x EBITDA). However, the significance of a single small transaction is minor in terms of shareholder value. For Relais to continue its acquisition-driven growth, it is important that subsidiaries begin to take a greater role in making acquisitions, as the group management's resources are insufficient to increase the number of deals. We also believe that the subsidiaries have a good understanding of the quality of the acquisition targets, as industry players often know each other due to years of competition or cooperation. We will add the small acquisition to our forecasts in connection with the next company update, but the estimate revision pressures following the transaction are minor.