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Relais Group Oyj: Strategically important acquisition to boost growth and online capabilities - Nordea

Relais announced today that it will acquire Lumise, an e-commerce operator providing vehicle lighting solutions, as well as the shares of the procurement company Optisell. Sellers will continue to be employed by Lumise and will contribute to the further development of the company.

Given the latest acquisitions (Strands and Lumise), we think the company is aiming to create global brand house within lighting solutions. To our understanding, the company is currently a leading aftermarket lighting solutions provider in the world and acquisitions should create meaningful synergies from sourcing and cross-selling going forward. In addition, capabilities within online sales and marketing are upped with the acquisitions, which should enable higher operating leverage going forward.

In LTM 2/2011 Lumise sales were EUR 11m and EBITA EUR 1m. We expect consensus to make 4-5% estimate revision both on top line and adjusted EBITA for 2022-23E, while we note that Lumise has slightly lower profitability level when comparing to Relais (9.1% in LTM versus Relais 14.5% in 2020).
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