KH Group Inside information: KH Group divests HTJ and updates guidance for 2024

KH Group Plc

Inside information 7.6.2024 at 12:00 pm EEST

Inside information: KH Group divests HTJ and updates guidance for 2024

KH Group Plc, together with the other shareholders of HTJ Holding Oy ("HTJ"), has today signed an agreement on the sale of shares to the XPartners Group company XPartners Finland Holding Oy. The completion of the transaction requires the approval of the Finnish competition authorities. The divestment of HTJ is an important step towards KH Group's objective to become an industrial group built around the business of the earth-moving machinery supplier KH-Koneet.

The debt-free purchase price of the share transaction is EUR 23.0 million. KH Group's holding in HTJ is 91.7%, and its share of the purchase price after the deduction of net debt and transaction costs is an estimated EUR 13.2 million. The transaction is expected to be completed by the end of September and its capital gain to be approximately EUR 2.6 million based on the March 2024 balance sheet, including the redemption liability of EUR 0.9 million for minority shares derecognised in connection with the sale. The capital gain is calculated with the assumption that that the closing would take place in September. The final purchase price will be specified at the time of the sale.

HTJ is one of the leading construction consulting companies in Finland and offers its customers a wide range of expert services in construction management, site supervision, energy and environmental consulting and project management. The company employs over 200 experts and serves customers across Finland. Pro forma net sales for the financial period 2023 amounted to EUR 26.3 million and operating profit to EUR 2.6 million.

Following the effects of the sale, KH Group’s pro forma guidance for 2024 is as follows:

Net sales of EUR 370–390 million and operating profit of EUR 9-13 million including the capital gain from Indoor’s property sale in Estonia. Thus, the guidance has been updated only by removing HTJ’s share of the previously estimated net sales and operating profit for the financial period. From now on the HTJ financial result 2024 and Group’s capital gain from the HTJ sale will be reported as discontinued operations.

"HTJ has developed strongly during KH Group’s ownership period since 2021. Following determined development work, the company has improved the range of services and geographical network. HTJ’s team consists of true professionals in construction management with whom it has been a pleasure to cooperate. We would like to thank HTJ’s management, personnel and other owners for the years together," says Tommi Rötkin, CFO of KH Group.

"HTJ’s position as a strong and independent construction consulting company will be maintained following the acquisition, and we will continue to work under the HTJ brand as before. With the new owner, we will have good prospects to continue our expansion in Finland in line with our strategy, both organically and through acquisitions. XPartners includes several Nordic companies in the industry, with which we will get to share expertise and environmental and sustainability know-how" says Janne Ketola, CEO of HTJ.

"HTJ has an excellent reputation in the construction management business and the company has succeeded in establishing a significant market position in Finland. The acquisition of HTJ will provide a strong platform for further growth in Finland and support our strategy of growing our business across the Nordics," comments Olle Bertfelt, CEO of XPartners.

KH GROUP PLC



Ville Nikulainen

CEO

FURTHER INFORMATION:

CEO Ville Nikulainen, tel. +358 40 045 9343

DISTRIBUTION:

Nasdaq Helsinki Ltd

Major media

KH Group Plc is a conglomerate with four business areas: KH-Koneet, Indoor Group, Nordic Rescue Group and HTJ. All of our business areas are leading players in their sectors in B2B products and services and consumer trade. Our objective is to focus on the business of the earth-moving machinery supplier KH-Koneet. Other business areas will be further developed and then divested in line with the Group’s investment strategy. KH Group’s share is listed on Nasdaq Helsinki.