Company announcement 20/2022
The factory is one of the most well-automated factories in the Nordics and entering this part of the supply chain in
"With the acquisition, we raise our ambitions for the B2B market, which has already shown its great potential for HusCompagniet in the recent years. At the same time, we strengthen our value chain, so that we become strong in the sales, production, and construction phase of semi-detached houses - and this gives us a unique position in the market. We already have our factory in
Highlights
- The transaction represents an enterprise value on a cash and debt free basis of
DKK 90 million . The acquisition will be structured as a 100% cash payment financed through existing revolving credit facility -
The factory is acquired including existing orderbook of around
DKK 200 million - The factory will support the increasing production demand and amplify HusCompagniets increasing market shares in the semi-detached segment
- With different initiatives the capacity is expected to increase to approximately 800 units, thus the factory can produce all semi-detached units
- The production will meet the requirements for sustainable building such as DGNB-certified buildings
- Automation and benefits obtained between our Swedish factory and the newly acquired factory
- In-house factory production mitigates supply chain challenges both within subcontractors as well as certain materials
Factory acquired
The factory is in Esbjerg, Jutland in
The factory currently employs 51 blue collar workers and 21 white collar workers The blue-collar workers are mainly unskilled labour and prefab production can therefore mitigate future expected scarcity and bottlenecks in the market of subcontractors.
Strategic rationale
Danhaus has a factory for prefab products, which is unique in
Acquiring the factory will be a great strategic opportunity for our semi-detached segment. Especially as the larger pension and real estate funds are focused on sustainability. We believe it also supports our efforts in making sustainable building more efficient and cost effective and thereby driving the sustainability agenda. Another driver is the increasingly difficulty finding qualified craftsmen, as the factory mainly employs unskilled labour.
We believe HusCompagniet can benefit from learnings of our Swedish factory and the newly acquired factory and drive efficient production with scale benefits.
About Danhaus
Danhaus was founded in 1978 with focus on building energy and environmentally sustainable Danish houses on the German housing market. In the following 20 years, the business model remained unchanged with the sale of Danish houses to
Key transaction and financial highlights
The transaction represents an enterprise value on a cash and debt free basis of
The acquisition will be presented in the financials for 2022 as a separate segment and integrated in semi-detached segment in 2023 with adjusted comparable figures.
2022 expected revenue from the factory is around
The impact on 2022 financial outlook and targets from the transaction
- The medium-term target aiming for selling 500 semi-detached houses a year by 2023-2025 will be updated to 750 houses a year towards 2025
-
2022 expected revenue from the factory is
DKK 100m with an expected break even result -
Special items is expected to be in the range
DKK 2-5m
Leverage is expected to be around 2.25x after acquisition with a target below 2.0x by end of 2023 at the latest.
The transaction does not impact HusCompagniets capital allocation and dividend policy to return excess liquidity to shareholders through dividends and share buybacks. HusCompagniet will target a pay-out ratio of 50% of net profit divided between 25% in the form of dividends and around 25% in the form af share buybacks.
Due to the size of revenue in DKK, the acquisition does not require approval from the competition authorities.
Financial guidance for 2022 excluding the transaction and related costs is unchanged, however the visibility has further been reduced due to the war in
Advisors
For additional information, please contact:
HusCompagniet
Cristina Rønde Hefting, Head of IR & Press +45 51 96 23 14
Information on HusCompagniet
HusCompagniet is a leading provider of single-family detached houses in Denmark. The company also builds semi-detached houses to both private consumers and professional investors and has a presence in Sweden where it produces prefabricated wood-framed detached houses through its VårgårdaHus brand.
The Group operates an asset-light and flexible delivery model with on-site building, primarily on customer-owned land. The construction is outsourced to subcontractors, allowing for a flexible cost base. In 2021, HusCompagniet generated revenue of approximately
HusCompagniet delivered 1,831 houses in 2021, of which 1,441 were detached houses in Denmark, corresponding to a market share of approximately 24% of the Danish detached-house new-build market segment. HusCompagniet has 16 offices with showrooms in Denmark and Sweden and more than 60 show houses and offers digital sales through the online platform "HusOnline". HusCompagniet currently has more than 400 employees.
II
https://news.cision.com/huscompagniet-a-s/r/huscompagniet-acquires-prefab-factory-to-accelerate-production-in-the-growing-semi-detached-segment-,c3550782
https://mb.cision.com/Main/21145/3550782/1567435.pdf
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