Humble Group: Santa bringing the 23rd acquisition of the year - ABG
Acquires Slovenian manufacturer Bio Pak
Adding 2.7% on sales and 3.6% on EBITDA in ‘22e
Pays 4.3x EV/EBITDA
ANNONS
Continues strengthening the sports nutrition segment
Today Humble Group announced its 23rd acquisition this year, of the Slovenian manufacturer Bio Pak. Bio Pak is a manufacturer of innovative dietary supplements, primarily tablets and capsules, made by organic and natural raw materials. Furthermore, the company owns a large share of its value chain and manufactures both for clients and for its own private label products. According to Humble’s management, Bio Pak has a solid financial history with high growth figures and underlying profitability. Bio Pak is expected to post sales and EBITDA of SEK 101m and 14m in 2022, respectively. This corresponds to a margin of 14.3%, which is higher than our current estimates for Humble Group of 10.4% in ‘22e. The acquisition adds on both to Humble’s manufacturing vertical as well as its sports nutrition and ingredients segment, which is in line with its outspoken strategy to become strong player within sports nutrition.
Adding 2.7% to sales and 3.6% to EBITDA in ‘22e
All else equal, based on our 2022 estimates, the acquisition could add 2.7% to the group’s sales and 3.6% to EBITDA. Bio Pak is acquired to a fixed purchase price of SEK 61.6m, where earn-outs based on the EBIT performance in ’21e-‘23e could be added. This translates to an acquisition multiple of 4.3x EV/EBITDA, which we consider to be in the lower range when looking at Humble’s historical acquisitions. Of the fixed purchase price, 69% will be paid in cash and the remaining 31% in shares. This corresponds to a share dilution of roughly 0.3%.
Valuable synergies to low multiples
In all, this acquisition is yet another step toward strengthening Humble’s sports nutrition offering. According to Humble’s management, Bio Pak will add a completely new supply-leg to the group, meaning that there should be great opportunities for the existing brands in Humble’s portfolio t
...
Läs mer på Introduce