Elanders AB (publ) (OM:ELAN B) signed an agreement to acquire Kammac Limited on November 8, 2023.The purchase price will be paid in two parts, one at the time of the takeover and the other as an earn-out in 2025. The initial valuation, including the earn-out, amounts to just over £100 million on a cash- and debt-free basis, of which around two thirds will affect cash flow negatively in the fourth quarter 2023. The earn-out will be paid during the second quarter 2025 and is based on the outcome of 2024.

The acquisition is mainly financed with existing credit facilities and the acquisition costs are expected to be approximately £1.49 million. During the last twelve-month period, Kammac had net sales of more than £90 million with very good profitability. The company will be consolidated into the Elanders Group as of November 2023.

Oliver Duke, Dan O?Gorman and Kayleigh Watson of Walker Morris LLP acted as legal advisor to Elanders AB.