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Alcadon: M&A adding track record – and value - SEB

Consolidating Alcadon Group’s acquisition of Irish Woods Communications, we upgrade our sales and EBITA estimates, respectively, by an average of 7% and 16% over our forecast period 2024-26. We argue Woods brings track record and quite solid margins, as well as geographical diversification to Alcadon. Based mainly on revised earnings we set our new DCF based mid-point equity value at SEK 90 (range of SEK 76.50-103.50), up from SEK 80.

Consolidating Alcadon Group’s acquisition of Irish Woods Communications, we upgrade our sales and EBITA estimates, respectively, by an average of 7% and 16% over our forecast period 2024-26. We argue Woods brings track record and quite solid margins, as well as geographical diversification to Alcadon. Based mainly on revised earnings we set our new DCF based mid-point equity value at SEK 90 (range of SEK 76.50-103.50), up from SEK 80.
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