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Balco: M&A announcement: tentative pro forma contribution of 4% to group sales and EBIT - SEB

Balco acquires Söderåsen AB, which we think fits well within its turnkey strategy for housing association clients. Based on the last financial year, Söderåsen recorded sales and estimated EBIT respectively of SEK 53m and SEK 5.3m (10% margin). This suggests a 4% pro forma contribution to Balco Group sales and EBIT, based on our current full-year 2022 forecasts. We calculate Balco is paying a EV/sales of 0.66x and EV/EBIT of 6.6x. We reiterate our SEK 100 mid-point value.

Balco acquires Söderåsen AB, which we think fits well within its turnkey strategy for housing association clients. Based on the last financial year, Söderåsen recorded sales and estimated EBIT respectively of SEK 53m and SEK 5.3m (10% margin). This suggests a 4% pro forma contribution to Balco Group sales and EBIT, based on our current full-year 2022 forecasts. We calculate Balco is paying a EV/sales of 0.66x and EV/EBIT of 6.6x. We reiterate our SEK 100 mid-point value.
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