Humble Group AB’s (publ) (“Humble”) board of directors has resolved to authorise the management in Humble to proceed with acquisitions of six European companies (the “Companies”) and to enter into letters of intent with the sellers of the Companies. Following the execution of the letters of intent, Humble will carry out customary legal, financial and tax due diligence review of the Companies as well as negotiating the terms in the share purchase agreements.
The Companies are operative within production, distribution and sale of products and brands. Combined, the Companies have an annual net revenue and adjusted EBITDA of SEK 260 million and SEK 40 million, respectively. Provided that Humble reaches final agreements with the sellers of the Companies on the commercial terms that have already been agreed upon, Humble will acquire the Companies for an average EV/adjusted EBITDA multiple of approximately 3.5x.
Together with Humbles pro forma1 net revenue and adjusted EBITDA for the last twelve months (30 June 2020 to 30 June 2021) and the acquisition of Swedish Food Group AB and Solent Global Limited, and provided that all six acquisitions are completed, the aggregated net revenue and adjusted EBITDA amounts to approximately SEK 3,385 million and approximately 444 million, respectively. In total, this means a proforma increase in net sales of 76% and adjusted EBITDA of 78% at Group level.
“The Companies are successful, family owned and driven by entrepreneurs with a long history of extensive experience of their respective fields. The six Companies contribute together with strong and well-established businesses with high profitability and great potential to Humble Group. It also contributes to an extended product portfolio for Humble Group and to a broader distribution network, which enables great synergy effects in the future. We will work very hard in order to reach a final agreement with all sellers of the Companies.” says Marcus Stenkil, Head of M&A at Humble.
Humble has identified several synergy opportunities between the Companies and Humble Group, including sales between companies, exchange of knowledge, cooperation and margin improvements in cooperation with suppliers. There are no guarantees whether purchase agreements will be entered into or not. Humble has not yet begun with the due diligence procedure in any of the companies, which is why financial key performance indicators, purchase prices and other details in the transactions may be changes ahead of completion of each acquisition. Humble will announce the development of events regarding each acquisition as soon as additional material information is at hand.
1Certain companies in the pro forma have historically had business relations with each other. In the pro forma, the sales and purchases between the companies before they become a part of Humble Group are accounted in order to simplify. This are transactions which will be classified as internal transactions following the acquisitions and thereby also become eliminated in the group accounts.
For further information, please contact:
Simon Petrén, CEO, Humble Group AB
Tel: +46 70 999 94 55
The information in this press release was sent for publication, through the agency of the contact persons set out above, at the time stated by Humble’s news distributor, Cision, at the publication of this press release.
Humble Group is a Swedish food-tech and FMCG-group, supplying the next generation of products that are good for people and the planet. Humble targets the segments of foodtech, eco, sustainability and vegan to drive high organic growth, acquisitions and utilize synergies in the different operation entities: Brands, Distribution, Manufacturing and Ingredients and R&D. Humble’s technology solutions, refined through scientific research and extensive market experience, facilitate new formulations and recipes that improve the taste and texture of the next generation of sugar-reduced, sustainable and vegan products. For more information visit www.humblegroup.se
Humble is listed on Nasdaq Stockholm, First North Growth Market, under the ticker HUMBLE
FN Sweden AB is Humble’s certified adviser. Tel: 08-528 00 399 E-mail: email@example.com
This press release contains forward-looking statements that reflect Humble’s intentions, beliefs, or current expectations about and targets for Humble’s future results of operations, financial condition, liquidity, performance, prospects, anticipated growth, strategies and opportunities and the markets in which Humble operates. Forward-looking statements are statements that are not historical facts and may be identified by words such as “believe”, “expect”, “anticipate”, “intend”, “may”, “plan”, “estimate”, “will”, “should”, “could”, “aim” or “might”, or, in each case, their negative, or similar expressions. The forward-looking statements in this press release are based upon various assumptions, many of which are based, in turn, upon further assumptions. Although Humble believes that the expectations reflected in these forward-looking statements are reasonable, it can give no assurances that they will materialize or prove to be correct. Because these statements are based on assumptions or estimates and are subject to risks and uncertainties, the actual results or outcome could differ materially from those set out in the forward-looking statements as a result of many factors. Such risks, uncertainties, contingencies and other important factors could cause actual events to differ materially from the expectations expressed or implied in this release by such forward-looking statements. Humble does not guarantee that the assumptions underlying the forward-looking statements in this press release are free from errors nor does it accept any responsibility for the future accuracy of the opinions expressed in this press release or any obligation to update or revise the statements in this press release to reflect subsequent events. Readers of this press release should not place undue reliance on the forward-looking statements in this press release. The information, opinions and forward-looking statements that are expressly or implicitly contained herein speak only as of its date and are subject to change without notice. Neither Humble nor anyone else undertake to review, update, confirm or to release publicly any revisions to any forward-looking statements to reflect events that occur or circumstances that arise in relation to the content of this press release, unless it is not required by law or Nasdaq Stockholm’s rule book for issuers.