Handicare - Savaria to aquire Handicare

Savaria offering SEK 50 per share The BoD has recommended the offer The Offer corresponds to ‘21e EV/EBITA c. 13x ABGSCe Savaria announces a cash offer to HANDI shareholders Handicare’s Canadian peer, Savaria, announces a public cash offer to Handicare’s shareholders. The offering is SEK 50 per share, 22% above last closing price, and corresponds to an EV/EBITA c. 13x based on our 2021 forecasts.

The price of the Offer is final and will not be increased. The Board of Directors considers that the immediate rewards of the offering reflect Handicare’s long-term prospects and has therefore decided to recommend the offer. The largest shareholder, Cidron Liberty Systems (Nordic Capital) with c.

63% of shares and votes, has informed Savaria that it supports the Offer and that it has the intention to accept it. Fully focused Accessibility company Handicare has been on a transformation journey ever since the strategic review in the fall of 2019 was initiated, which concluded that Handicare should emphasise all its efforts towards becoming more focused Accessibility (Stairlift) company. Accessibility today accounts for more than 90% of the groups adj.

EBITA. In 2020, the “Lift-up” program was introduced. Having concluded this three-phase plan, Handicare is now set to enter 2021 with a much more competitive cost base, enabling it to reach its financial targets.

Solid Q4 – EBITA +34% vs ABGSCe As a result of Savarias public cash offer, Handicare announces its preliminary results for Q4’20. Sales are anticipated at EUR 59. 2m (+5.

6% organic growth) and +3% vs ABGSCe. Notably, Accessibility grew its sales by c. 12% organically.

Adj. EBITA is anticipated to be EUR 7. 9m, for a margin of 13.

3% and 34% above ABGSCe. Furthermore, Handicare comments that although short-term demand remains uncertain amid the pandemic, the finalisation of the Lift Up program should have created a solid platform for growth. Overall, it estimates that the FY’21 results should be in line with its f.