Elanders AB: Elanders makes strategic acquisition in Supply Chain and doubles Group net sales
(Thomson Reuters ONE) -
Today Elanders signed a contract for the acquisition of all the shares in the
German supply chain management company LGI Logistics Group International GmbH
("LGI"), which is one of the leading players in Industrial Contract Logistics in
Germany. In 2015, LGI's net sales were around EUR 430 million, its normalized
EBITDA was approximately EUR 29 million and it operated in ten countries,
primarily in Europe with Germany as its main market. Through the acquisition,
Elanders takes a major step forward in global supply chain management and the
annual group net sales will increase from around SEK 4.2 to 8.3 billion, while
the number of employees will rise from around 3,200 to 7,200 (pro forma 2015
level). The acquisition is expected to contribute positively to earnings per
share already in the current year. The purchase price is calculated at MEUR 257
on a debt free basis.
Elanders has been looking for a complement to its existing operations in Supply
Chain Solutions for some time. The investment criteria have been that the
acquisition target would have a strong foothold in Europe or the US and a
significant customer base that provides opportunities for existing Elanders to
expand in other markets. LGI meets these criteria.
"Together with LGI we create a stable platform for future organic growth in
Supply Chain Solutions, making our global offer more complete. We will now be
able to offer Elanders' existing customers the same services in Europe as they
today enjoy in Asia and the Americas. For LGI's customers the result will be the
opposite, gaining access to Elanders' network in Asia and the Americas," says
Magnus Nilsson, President and CEO of Elanders AB.
LGI is one of Germany's leading players in Industrial Contract Logistics and its
long-term vision is to become one of the leading players in Europe. LGI was
created as an offshoot from Hewlett Packard Deutschland GmbH in 1995 and has
grown considerably since. Currently LGI has more than 45 facilities worldwide,
whereof 35 in Germany. In addition to Germany, the company has operations in
Austria, the Czech Republic, Great Britain, Hungary, the Netherlands, Poland,
Russia, Sweden and in the US. LGI is specialized in value-adding services to
customers in Automotive, Electronics, Healthcare & Life Science, Industrial, as
well as Fashion & Lifestyle. The company has a particular focus on product and
component flows with extremely short lead times and provides everything from
pure logistic solutions to comprehensive supply chain management solutions.
Customers in Fashion & Lifestyle were added to the customer base in 2013 when
LGI acquired ITG GmbH from Deutsche Post.
"LGI has a good reputation on the market among both its customers and
competitors. The acquisition is another step in the strategy Elanders has
conducted in recent years of becoming a clear global player and to reduce Group
dependency on traditional printing. After the acquisition, Supply Chain
Solutions will make up three fourths of Group net sales. Through the acquisition
our four customer groups Automotive; Electronics; Industrial Manufacturing as
well as Retail, Fashion & Fast-Moving Consumer Goods will all be of
approximately the same size," continues Magnus Nilsson.
"We have built up a business we are very proud of and together with Elanders we
can broaden and strengthen our offer to our customers. Elanders' strong position
in Asia and Americas also creates new opportunities for us and our customers.
Elanders' capacity within Print & Packaging as well as its competence in e-
Commerce will open up for further development of our customer base," comments
Andreas Bunz, President and CEO of LGI.
For further information regarding LGI please see the following website:
* www.lgi.de
The acquisition is conditional on receiving the necessary approvals by German
and Austrian competition authorities. The acquisition will be financed through a
combination of external loans and a new rights issue. Bridge financing will be
arranged through Elanders' existing bank contacts. As part of the financing
plan, the Board of Elanders intends to propose a new issue of around MSEK 600
with preferential rights for existing shareholders. The entire amount of the new
issue will be guaranteed by principle owner Carl Bennet AB. A detailed time plan
and conditions will be announced later.
Telephone conference
Elanders will hold a conference call today the 17 of June 2016 at 14:00 CET for
analysts, press and media. Please see the numbers below to participate in the
conference:
Sweden: +46 8 5065 3937
Germany: +49 69 2222 10624
UK: +44 20 3427 1918
USA: +1 646 254 3365
Code: 4450329
Elanders AB (publ)
For further information please contact:
Magnus Nilsson, President and CEO, +46 31 750 07 50,
magnus.nilsson(at)elanders.com
Andréas Wikner, CFO, +46 31 750 07 50,
andreas.wikner(at)elanders.com
The information in this press release has been made public according to the
Swedish Securities Market Act and/or the Swedish Financial Instruments Trading
Act. This information was published on 17 June 2016.
2016-06-17 Elanders Press Release:
http://hugin.info/1053/R/2021403/750959.pdf
This announcement is distributed by GlobeNewswire on behalf of
GlobeNewswire clients. The owner of this announcement warrants that:
(i) the releases contained herein are protected by copyright and
other applicable laws; and
(ii) they are solely responsible for the content, accuracy and
originality of the information contained therein.
Source: Elanders AB via GlobeNewswire
[HUG#2021403]
Unternehmensinformation / Kurzprofil:
Datum: 17.06.2016 - 11:36 Uhr
Sprache: Deutsch
News-ID 478391
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