Wednesday, April 14

Savaria acquires the Swedish company Handicare

Savaria CEO Marcel Bourassa and his son Sébastien, vice president of operations and integration of the company (Photo: courtesy)

Savaria (SIS, $ 17.64), which designs accessibility products for people with reduced mobility, is offering $ 521.1 million to buy Swedish Handicare Group AB.

The Laval company wants to become a “world leader in accessibility”.

The company’s stock reacted well to the announcement and climbed $ 1.45, or 8.96%, to $ 17.64 on the Toronto Stock Exchange by mid-morning.

Handicare’s board of directors confirmed to Savaria that it had unanimously decided to recommend its shareholders to accept the offer, Savaria management revealed in a statement.

Handicare’s main shareholder, Cidron Liberty Systems, holding 62.9% of the shares and votes of the Swedish company, has also pledged to vote in favor of the transaction.

If it goes through, the offer should be finalized before the end of April 2021.

Handicare in figures

According to Savaria, Handicare generated sales of C $ 317 million and earnings before interest, taxes, depreciation and amortization (EBITDA) of $ 37 million in its 2020 fiscal year ended December 31.

The Stockholm-headquartered company has 900 employees, manufacturing plants located primarily in the UK, the Netherlands, the US and China, and has sales in around 40 countries at a rate of ‘approximately 45,000 staircase seats per year.

“My vision has long been to build a business that would serve the global market. All over the world, people are aging and need equipment that increases their independence and allows them to stay in their homes longer. In our discussions with Handicare, it is clear that we share a common vision and mission. Their excellent range of staircase chairs, the sophistication of their manufacturing and their presence in the market are an exceptional addition to our business, ”said Savaria President and CEO Marcel Bourassa in a press release.

With this acquisition, Savaria will have approximately 2,300 employees and revenues of over $ 671 million annually, along with Adjusted EBITDA of $ 96 million.

Further details will follow.

Leave a Reply

Your email address will not be published. Required fields are marked *