Boreo strengthens its Technical Trade Business Area by strategic add-on acquisition of J-Matic Oy and J-Matic Rent Oy
BOREO PLC Investor news 1 December 2022 at 09:00 EET
Boreo strengthens its Technical Trade Business Area by strategic add-on acquisition of J-Matic Oy and J-Matic Rent Oy
Boreo Plc has on December 1, 2022 signed and completed a share and purchase agreement to acquire the entire share capital of J-Matic Oy and J-Matic Rent Oy (“J-Matic” or “the Company”), from CEO Jarkko Laukkanen (“Seller”). Upon the transaction, the Company is led by Jarkko Laukkanen and it continues operating independently as part of Boreo’s Technical Trade business area.
“We are delighted to welcome a great new entrepreneurial company led by Jarkko Laukkanen to the Boreo family. As a company with niche positioning, strong operating margins and returns on capital, J-Matic fits well with our target company profile. We also expect the acquisition to broaden our capital allocation opportunities within contract manufacturing” says Boreo CEO Kari Nerg.
Founded in 2005, J-Matic is an industrial manufacturing services company that is focused on box-build assemblies. The Company delivers technically demanding turnkey solutions to its customers that have leading market positions within their own industries. Delivered turnkey solutions typically include mechanic-, electronic-, pneumatic- and automation applications. J-Matic has 20 employees with operations located in Lempäälä, Finland. In FY 2021, the Company had illustrative revenues of c. EUR 2,3 million and an EBITDA of c. EUR 0,6 million.
The transaction consideration comprises of a fixed purchase price payable at closing in cash and by Boreo issuing c. EUR 0.2 million in shares to the Seller (5,000 shares at 39.50€). In addition, Boreo may pay an earn-out to the Seller subject to the results of J-Matic in years 2023-2025. Further information on the share issuance has been released in a separate stock exchange release on 1.12.2022.
J-Matic will be reported under Boreo’s Technical Trade Business Area.
Vantaa, 1 December 2022
Boreo Plc
Kari Nerg
CEO
Distribution:
NASDAQ Helsinki Ltd
Principal media
Further information:
Kari Nerg
CEO
tel 4
Aku Rumpunen
CFO
tel 6
J-Matic Oy and J-Matic Rent Oy – Combined illustrative key financials1
| 2021 | 2020 | 2019 | |
| Revenue, EURm | 2,3 | 1,9 | 1,7 |
| EBITDA, EURm | 0,6 | 0,3 | 0,2 |
| EBITDA, % | 24,0 | 15,8 | 10,3 |
| Total assets, EURm | 1,5 | 0,9 | 0,7 |
| Equity, EURm | 1,0 | 0,6 | 0,5 |
| Net debt, EURm | (0,8) | (0,3) | (0,3) |
[1] Illustrative key financials are based on Finnish Accounting Standards (FAS) and do not include internal eliminations.
Boreo in brief:
Boreo is a company listed on Nasdaq Helsinki that creates value by owning, acquiring and developing small and medium sized companies in Northern Europe. Boreo's business operations are organized into three business areas: Electronics, Technical Trade and Heavy Machines.
Boreo’s main objective is to create shareholder value in the long-term. It aims to achieve this with an acquisition-driven strategy, creating optimal conditions for its businesses to increase sales and improve profitability, and by being a best-in-class home for its companies and personnel.
The Group's net sales in 2021 were EUR 122 million and it employs some 300 people in seven countries. The company’s headquarter is in Vantaa.
