As part of the strategic review communicated in connection with the Q3 report, Handicare today signed an agreement to divest all the shares in Danish company Handicare Auto A/S to Auto Solutions ApS. The divestment of Handicare Auto Denmark is another step in the streamlining of Handicare's business, focusing on profitable growth.
"We believe that Auto Solutions ApS represents a better strategic fit with the business and together with the employees in Handicare Auto Denmark, will continue to develop the business to make it an even stronger partner for its customers and suppliers," says Staffan Ternström, President and CEO of Handicare.
The subsidiary Handicare Auto A/S, which mainly offers vehicle conversion for customers with special needs in Denmark, has 54 employees and sales of MDKK 147.7 (MEUR 19.8) in the 12-month period up until September 2019. The business, which was included in the Accessibility business segment, has experienced profitability challenges in the same period.
"I'm very pleased to welcome Handicare Auto Denmark to the Auto Solutions family. Together with Handicare Auto Denmark we are now strengthening our position on the Danish market and look forward to continuing to develop the Auto business together with management and employees," says Kenneth Peter Jensen, President Auto Solutions ApS.
The purchase price amounted to MDKK 25 (MEUR 3.3) on a cash and debt-free basis (Enterprise Value), corresponding to an EV/adjusted EBITA multiple of 11.5 for the full year 2018. The transaction triggers a write-down of goodwill and other intangible assets and implies a capital loss of approx. MDKK -75 (approx. MEUR -10), which will burden profit in the fourth quarter 2019.
The transaction was completed on December 16, 2019 with immediate access.
The strategic review of the Handicare Group continues according to plan.
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