Feelgood - Terveystalo to acquire Feelgood

Terveystalo offering SEK 5.70 per share Offer corresponds to ‘21e EV/EBIT of 20.4x ABGSCe Expertise from the Finnish occupational health market Terveystalo acquires 72% and submits mandatory cash offer This morning, Terveystalo announced that it had acquired 72.14% of the outstanding shares in Feelgood and made a mandatory cash offer for the remaining shares. The terms of the mandatory cash offers state that SEK 5.70 per share is final and Terveystalo has communicated that it will not increase its offer or purchase any shares for higher than the offer price. The selling shareholders include Provobis Holding, Bengt Stillström and CEO Joachim Morath. Furthermore, Terveystalo has received irrevocable and unconditional acceptance to acquire shares from shareholders controlling an additional 6% of the outstanding shares.

Offer values Feelgood at SEK 606m & ‘22e FCF yield of 6.5% The offer of SEK 5.7 per share corresponds to a premium of 43% vs. the 7 June closing price. Compared to the volume-weighted average price of the last 30 and 180 trading days, the offer price corresponds to a premium of 55% and 82%, respectively.

It values Feelgood at an equity value of SEK 606m, ‘21e EV/EBIT of 20.4x and a 22’e FCF yield (lease adj.) of 6.5%. We believe that the multiples and premium represent a reasonable offer to Feelgood shareholders. An independent bid committee has unanimously recommended that Feelgood’s shareholders accept the offer.

Terveystalo – a leading healthcare provider in Finland Acquirer Terveystalo is a Finnish healthcare provider listed on Nasdaq Helsinki. Terveystalo covers both primary and outpatient secondary care to corporate, private and public sector customers. Services offered include general practices, specialist medical care, diagnostic services and outpatient surgery.

Notably, the market for occupational health in Finland, where Terveystalo holds the leading position, is a pioneering market. Its market value is ~SEK 11bn, which is mor....