The background to the acquisition
Bayn and Pändy have been working together for some time and identified potential synergies in technology, product development, sales, raw material supply, administration and marketing. A rapprochement between the companies took place last year and the letter of intent announced on 2020-01-10 also informed that Bayn Europe, strengthened with the team around Pändy and its management and influential shareholders, intends to build a group together that will invest in and develop companies in Food-Tech.
Implementation
The agreement is structured as a non-cash issue where the shares in Pändy are taken over by Bayn in return for Pändy's owners receiving newly issued shares in Bayn. This issue was decided at Bayn's Extraordinary General Meeting 2020-03-11. The delivery of these shares is expected to take place during the next two weeks. Bayn has also agreed with the four largest shareholders in Pändy on a lock-up of 6-12 months and 24 months lock-in, which means that they will not sell any shares during this period and also continue in Bayn as active owners.
The way forward
"Through synergies, the current assets in Pändy and the capital acquisitions made by the company, we estimate that the capital will be sufficient to reach a positive cash flow by the end of the year. The integration work has been planned for and we expect to see effects of the merger in the coming months. M&A activities have also started and possible new acquisitions are on the agenda" says Patrik Edström, CEO Bayn Europe AB
"We have seen an increased demand for our products since the launch of Pändy's full range in December. Together with the management of Bayn and the new platform that First North provides, we have good opportunities to scale sales and marketing further. Just in the short period since we announced that we intend to complete the deal, many new leads and business opportunities have been received. We have a very exciting and eventful time ahead of us." says Simon Petrén, CEO Pändy Foods AB.
