The installation company Instalco has entered into an agreement to invest in the German installation group Fabri, according to a press release.

In the first step, the investment is made in newly issued shares and corresponds to a minority stake of 24% of the voting rights and capital in Fabri after capital contributions. The consideration for the minority investment amounts to approximately EUR 15 million, of which approximately EUR 13 million will be paid in newly issued Instalco shares and approximately EUR 2 million in cash.

The transaction is being made to capitalize on the growth opportunities identified in the German installation market together with a local partner and with a long-term plan to become the majority shareholder.

Fabri, based in Nuremberg, currently employs 400 people in 12 subsidiaries across Germany, with an annual turnover of approximately EUR 70 million.

The investment is expected to have a marginally positive impact on Instalco's earnings in the current financial year and in 2025.

In step two, Instalco will acquire an additional 27% of the shares in Fabri and in step three an additional 17% from the current owners.

The completion of these steps is conditional on agreed thresholds for Fabri's profit. Through the second step, majority ownership in Fabri is achieved and thus Fabri is included in Instalco's consolidated financial statements, which, based on current estimates, is expected to occur no earlier than the first quarter of 2026 and no later than the second quarter of 2027.

The third step is expected to be completed in 2029 at the earliest. The purchase price for the second and third steps is to be paid in cash and fits within Instalco's current investment strategy and investment activity.

The fourth and final step consists of options to acquire the remaining shares from Fabri's current owners during the period 2030 through 2033.

Instalco will hold a conference call today at 17.30 CET.