Inside information

KH Group sells the logistics service company Logistikas

KH Group Plc
Inside information 30 June 2023 at 5:30 pm EEST

Inside information: KH Group sells the logistics service company Logistikas

As part of its strategic transformation, KH Group Plc has today, on 30 June 2023, together with the other shareholders of Logistikas Oy, sold the shares of Logistikas Oy to the Swedish logistics company Logent AB. The transaction was signed and completed simultaneously.

The debt-free purchase price of the share transaction is EUR 23.5 million. KH Group’s holding in Logistikas was 66.5% and its share of the purchase price, after the deduction of net debt and transaction costs, is approximately EUR 11.9 million, including the purchase price for the shares and for the receivables from Logistikas Oy related to dividend and capital distribution in conjunction with the transaction. The final purchase price will be determined on the basis of Logistikas Oy’s balance sheet on 30 June 2023 and any adjustments to the purchase price will be paid during the third quarter. The transaction will have approximately EUR 4.8 million positive impact on KH Group’s result for the financial period. Proceeds from the sale will be used, among others, for repayment of interest-bearing debt at the parent company and for investments required by the change in strategy.

Logistikas offers local logistics, in-house logistics and immediate-proximity warehousing services, logistics expert services and comprehensive procurement services. The company operates in 10 locations in Finland, both at its own logistics centres and at customer premises responsible for in-house logistics. For the financial period 2022, Logistikas’ net sales were EUR 31.8 million, EBITDA was EUR 2.4 million and operating profit (EBITA) was EUR 1.9 million ⁽¹⁾.

“Under KH Group’s ownership, Logistikas’ management and other personnel have done an excellent job in developing services and expanding the network geographically. As a Nordic contract logistics expert, Logent offers a strong foundation for the further development of Logistikas’ business. We would like to thank the management, personnel and other owners of Logistikas for our journey together and wish them success also in the future,” states Ville Nikulainen, KH Group’s CEO.

The divestment of Logistikas represents a significant step in KH Group’s strategic transformation. The medium-term objective of the company is to become an industrial group built around the business of the earth-moving machinery supplier KH-Koneet.

“The divestment of Logistikas frees up capital at the Group and thus contributes to our strategic focus on the earth-moving machinery business,” says Tommi Rötkin, KH Group’s Investment Director.

“The acquisition of Logistikas, a highly complementary business that is a market leader in Finland, supports our strategy of expanding and growing our presence in Northern Europe. Logistikas shares our values and customer centric approach and has built an impressive platform across Finland which is a priority growth market for our business”, comments Linda Aidanpää Baronnet, CEO of Logent Group

¹⁾ The key figures are consolidated FAS (Finnish Accounting Standards) figures. EBITDA = operating profit + depreciation and amortisation, EBITA = operating profit + depreciation related to intangible assets resulting from corporate acquisitions

KH GROUP PLC

Ville Nikulainen
CEO

FURTHER INFORMATION:
CEO Ville Nikulainen, tel. [phone]
Investment Director Tommi Rötkin, tel. [phone]

DISTRIBUTION:
Nasdaq Helsinki Ltd
Major media
www.khgroup.com

Sievi Capital is now a conglomerate with a new name KH Group. Our five business areas are leading players in their sectors in B2B products and services and consumer trade. The objective of our strategy change is to focus on the business of the earth-moving machinery supplier KH-Koneet. KH Group’s share is listed on Nasdaq Helsinki.