Background and acquisition of Fehling
Long history of manufacturing premium surgical instruments
Fehling is a family-owned German company, founded in 1996, that develops and sells high-quality medical instruments. Fehling has a strong market position with direct operations in
Broadened product offering and strengthened position within surgical instruments
The acquisition is aligned with Stille's strategic objectives for growth and highlights the opportunities for consolidation in the niche and fragmented market of premium surgical instruments. Through the acquisition, Stille will significantly broaden its product offering. Through Fehling's direct sales channels and existing distributor relationships, Stille will also increase its global presence and further strengthen its position in strategically important markets.
"The acquisition of Fehling means that we strengthen our offering as the most high-quality manufacturer of surgical instruments in the premium segment within selected, niche clinical segments. This brings significant value to Stille's operations. Stille's surgical product offering is now strongly complemented, and the respective companies' distribution channels provide significant opportunities for increased sales," comments Torbjörn Sköld, CEO, Stille.
The combined entity2
The combined entity had for the financial year 2022 sales of approximately
"I look forward with confidence to being a part of Stille's organization, integrating our operations and realizing synergies" comments
"We have a clear strategy and growth agenda within Stille. We are delighted to have now succeeded in acquiring another business that meets our criteria in terms of focus, profitability, and growth potential. The acquisition marks an important step in Stille's ongoing journey to be a leading player in the premium segment for surgical instruments," comments Lars Kvarnhem, Chairman of the Board, Stille.
1Please see the appendix with financial information for Fehling, which is a part of this press release.
2EUR/SEK of 11.43.
Terms of the transaction and financing
The acquisition is conditional upon the Company receiving sufficient financing to carry out the acquisition and the Company's board of directors thus intends to resolve on a directed issue of shares subject to the general meeting's subsequent approval. The consideration for Fehling constitutes a cash and debt-free value of
Stille has appointed
Advisers
Torshälla,
For further information, please contact:
Torbjörn Sköld
CEO and President
+46 (0)70 316 63 91 | torbjorn.skold@stille.se
Niklas Carlén
CFO
+46 (0)73 087 49 70 | niklas.carlen@stille.se
This is information that
About Stille AB (publ)
Appendix
Stille reports in accordance with IFRS and Fehling in accordance with German GAAP. The following information is a combination of each company's reported financial information without adjustments for differences between the accounting standards applied. Consolidated financial information reported by Stille after completion of the acquisition may differ materially from the combined financial information contained herein.
Fehling's financial overview - Consolidated P&L for FY 2019-2022, H1 2023, and LTM (06/2023)1
(EUR million) | 20192 | 20202 | 2021 | 2022 | H1 2023 | LTM (06/2023) |
Revenue | 13.36 | 13.73 | 14.46 | 15.75 | 8.57 | 17.21 |
Gross profit | 7.44 | 7.45 | 8.31 | 10.32 | 5.43 | 10.90 |
Gross Margin | 55.7% | 54.3% | 57.5% | 65.5% | 63.4% | 63.3% |
OPEX | (5.03) | (4.95) | (5.10) | (5.65) | (2.80) | (5.75) |
EBITDA (adjusted)1 | 2.51 | 2.52 | 3.31 | 4.80 | 2.69 | 5.27 |
EBITDA Margin | 18.8% | 18.4% | 22.9% | 30.5% | 31.4% | 30.6% |
EBIT (adjusted) | 2.46 | 2.47 | 3.20 | 4.73 | 2.66 | 5.20 |
EBIT Margin | 18.4% | 18.0% | 22.1% | 30.0% | 31.0% | 30.2% |
Net result3 | - | - | 2.25 | 4.12 | 2.25 | 4.21 |
Combined Income Statements - FY 2021, FY 2022, and LTM (06/2023)
Stille4 | Fehling5,6 | Combined | |||||||
Audited | Audited | ||||||||
(SEK million) | FY2021 | FY2022 | LTM (06/2023) | FY2021 | FY2022 | LTM (06/2023) | FY2021 | FY2022 | LTM (06/2023) |
Total revenue | 187.1 | 246.3 | 268.9 | 165.3 | 180.0 | 196.8 | 352.4 | 426.3 | 465.7 |
Gross profit | 83.5 | 111.6 | 117.5 | 95.0 | 118.0 | 124.6 | 178.5 | 229.6 | 242.1 |
Gross Margin | 44.6% | 45.3% | 43.7% | 57.5% | 65.5% | 63.3% | 50.7% | 53.9% | 52.0% |
OPEX | (63.4) | (79.2) | (82.4) | (58.5) | (64.0) | (65.2) | (121.9) | (143.2) | (147.6) |
EBITDA (adjusted) | 26.8 | 42.1 | 47.2 | 37.8 | 54.9 | 60.2 | 64.6 | 97.0 | 107.4 |
EBITDA Margin | 14.3% | 17.1% | 17.6% | 22.9% | 30.5% | 30.6% | 18.3% | 22.7% | 23.1% |
EBIT (adjusted) | 20.1 | 32.4 | 35.1 | 36.5 | 54.0 | 59.4 | 56.6 | 86.4 | 94.5 |
EBIT Margin | 10.7% | 13.2% | 13.1% | 22.1% | 30.0% | 30.2% | 16.1% | 20.3% | 20.3% |
Note 1) Adjusted for non-recurring items.
Note 2) Financial information for 2019 and 2020 was not part of the financial due diligence, actual numbers may vary.
Note 3) Due to the corporate structure within the Fehling group, which includes a limited partnership where the owners of the limited partnership pay taxes, the historic net result may not be representative as the results going forward will be effected by a different tax rate when integrated with Stille
Note 4) Audited financial information.
Note 5) Fehling's simplified profit and loss statement.
Note 6) EUR/SEK of 11.43
https://news.cision.com/stille/r/stille-has-entered-into-an-agreement-to-acquire-fehling-instruments,c3884099
https://mb.cision.com/Main/1000/3884099/2461642.pdf
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