NoHo Partners: Acquired eight restaurants in Tampere - Nordea

NoHo Partners has acquired H5 Ravintolat Oy, which owns eight restaurants in Tampere. The portfolio includes one night club, one lounge bar, pubs and the restaurant operations of the brand new Tammela football stadium. The acquisition was made through stock transaction, and while the transaction price was not disclosed, we believe it has been moderate given the current weak market environment and based on NoHo’s earlier transactions (~4-5x EV/EBITDA). The previous owners will retain minority ownership and operational role in the business, and based on NoHo’s earlier transactions, we believe NoHo’s ownership could be between 60-80% of the total entity. In 2023, H5 Ravintolat generated net sales of EUR 8.5m with an EBIT margin of 13%, which is very good for a portfolio of restaurants, in our view. It’s net sales CAGR in 2019-23 was 58%, while EBIT CAGR was 64%. Hence, while being relatively small in size (~2% of NoHo’s 2025E revenue and ~2.5% of 2025E EBIT assuming the 13% margin) we believe that the acquired businesses will contribute positively in NoHo’s profitability going forward. We also view the restaurant operations of the Tammela stadium as particularly interesting, as it adds to NoHo’s portfolio of event venues (NoHo already operates the Nokia Arena in Tampere).