Aspo Plc
Inside information
April 29, 2024 at 11:45
Correction to the inside information: Aspo subsidiary makes major acquisition in
Sweden - Telko to become a leading local player in distribution of chemicals and
Leipurin expands into specialty ingredients and the food industry
Aspo Plc corrects and supplements the insider information published on April
29, 2024 at 09:25 regarding Telko's acquisition. The original announcement
incorrectly stated that the purchase price would be SEK 500 million. Corrected
information:

  * The enterprise value is SEK 500 million (approx. EUR 43 million*)
  * The estimated purchase price at closing is SEK 473 million (approx. EUR 40
    million*)
    *Based on the SEK-EUR exchange rate of 11.7052 on April 26, 2024.

The original announcement did not include the following information:

  * The transaction does not have an impact on Aspo's guidance for 2024, which
    remains unchanged: Aspo Group's comparable operating profit is estimated to
    exceed EUR 30 million in 2024.

The full text with the above mentioned corrected and supplemented information in
its entirety is available below.
****
Aspo's subsidiary Telko Oy expands its chemicals business in Sweden by acquiring
Swed Handling AB, a leading Swedish chemical distributor, from TeRa Invest AB.
As part of the transaction, Aspo's subsidiary Leipurin Oyj expands its food
industry business in Sweden, via the technical food ingredient distributor
Kebelco AB, which is a subsidiary of Swed Handling.
In Aspo Group's financial reporting, Swed Handling excluding Kebelco will be
reported as part of the Telko segment and Kebelco as part of the Leipurin
segment. The closing of the transaction is subject to customary competition
authority approvals and foreign direct investment (FDI) filings. Closing of the
transaction is expected during the third quarter of 2024.
"We are excited to take this step in our compounder strategy execution and
expand in Sweden through this acquisition which doubles our net sales in
chemicals. With Swed Handling's existing customer focused business model that
combines high quality processed chemical products with customized service, we
are significantly strengthening Telko's presence in the Nordic markets", says
Mikko Pasanen, Managing Director of Telko.
"Acquiring Kebelco enables Leipurin to expand further in the food industry,
beyond the bakery segment, with high value specialty products in line with our
strategy. So far Leipurin has operated in Sweden primarily in the bakery
segment, while in Finland expansion also to other food industry is well on the
way. This acquisition enables our shift towards technical value add products,
with obvious synergies with all Leipurin countries", says Miska Kuusela,
Managing Director of Leipurin.
"We are delighted to see both Telko and Leipurin expand through this significant
acquisition, making Sweden Aspo's largest country of operation in terms of total
net sales. Already prior to this latest transaction, Aspo has a successful
track-record of expanding into Sweden non-organically, via the acquisitions of
AtoBatC Shipping AB and Kobia AB", says Rolf Jansson, CEO of Aspo Group.
The enterprise value is SEK 500 million (approx. EUR 43 million*) with an
additional earnout mechanism of SEK 0-130 million (approx. EUR 0-11 million*)
for 2024-2025, depending on Swed Handling's profitability development, excluding
Kebelco. The estimated purchase price at closing is SEK 473 million (approx. EUR
40 million*). Up to SEK 100 million (approx. EUR 9 million*) of the total
purchase price can be paid in Aspo's shares and the rest in cash.
The proportion of the purchase price payable in shares will be decided by Aspo
prior to closing and the number of shares to be issued will be based on a volume
weighted average Aspo share price defined during a 30-day period ending 5 days
prior to the closing date. Aspo's shares are used to align the interests of Aspo
Group with the seller, whose key representatives remain in the service of Swed
Handling.
The Board of Directors of Aspo is expected to decide on the above directed share
issue (if any) to TeRa Invest AB in connection with the closing of the
transaction. Shares possibly directed will be subject to a 3-year lock-up
period. The possible earnout will be payable in cash in 2026.
Swed Handling (incl. Kebelco) has approximately 100 employees. The transaction
does not have an impact on Aspo's guidance for 2024, which remains unchanged:
Aspo Group's comparable operating profit is estimated to exceed EUR 30 million
in 2024.
* Based on the SEK-EUR exchange rate of 11.7052 on April 26, 2024. Actual future
outcomes may differ from the estimates.
Key financials
+----------+--------------+----------+---------+-----------+--------+----------+
|Acquired |Business |Related |Net Sales|Net Sales |EBIT |EBIT | |entity | |Aspo |SEK |EUR |SEK |EUR | | | |segment |million |million** |million |million** | +----------+--------------+----------+---------+-----------+--------+----------+
|Swed |Chemicals | |586.5 | |54.3 | | |Handling |ingredients |Telko |(2023) |51.2 (2023)|(2023) |4.7 (2023)| |excl. |distribution | |657.3 |61.9 (2022)|55.0 |5.2 (2022)| |Kebelco | | |(2022) | |(2022) | | +----------+--------------+----------+---------+-----------+--------+----------+
| |Technical food| |94.0 | |6.6 | | |Kebelco |ingredients |Leipurin |(2023) |8.2 (2023) |(2023) |0.6 (2023)| | |distribution | |80.3 |7.6 (2022) |7.5 |0.7 (2022)| | | | |(2022) | |(2022) | | +----------+--------------+----------+---------+-----------+--------+----------+
** Figures in EUR are based on the average SEK-EUR exchange rates: 10.62583 in
2022 and 11.45634 in 2023
Aspo Plc
Rolf Jansson
CEO
Further information, please contact:
Rolf Jansson, CEO, Aspo Plc, tel. +358 400 600 264, rolf.jansson@aspo
(mailto:rolf.jansson@aspo).com
Mikko Pasanen, Managing Director, Telko, tel. +358 40 743 6665,
mikko.pasanen@telko (mailto:mikko.pasanen@telko).com
Miska Kuusela, Managing Director, Leipurin, tel. +358 40 820 1943,
miska.kuusela@leipurin (mailto:miska.kuusela@leipurin).com
Distribution:
Nasdaq Helsinki
Key media
www.aspo.com (https://www.globenewswire.com/Tracker?data=sowAEh_dUtkMlgw6-
saDPErgZ6VVX63o26xwpyQ-lEjy86GH9hrtuLFziM6gc800zsIASGG5Qss8zeBW2Joszw==)
Aspo creates value by owning and developing business operations sustainably and
in the long term. Our companies aim to be market leaders in their sectors. They
are responsible for their own operations, customer relationships and the
development of these aiming to be forerunners in sustainability. Aspo supports
its businesses profitability and growth with the right capabilities. Aspo Group
has businesses in 16 different countries, and it employs a total of
approximately 700 professionals.
Â