HomeMaid grows with a large acquisition within B2B

Our initial take of HomeMaid’s latest acquisition is positive, despite the inherent risks of acquiring a company undergoing a turnaround. In our view, the transaction price appears modest, and we see potential for value creation if HomeMaid successfully implements operational improvements and realizes synergies. We will incorporate the acquisition into our forecasts no later than in connection with the company’s next quarterly report.

HomeMaid acquires Rimab to strengthen its B2B footprint

HomeMaid has signed an agreement to fully acquire Rimab Facility Service AB, a cleaning services provider with national presence across Sweden that employs around 230 people. Rimab serves a broad and reputable customer base, including names such as Volvo Group, Jönköping University, and Falkenberg Municipality. In line with HomeMaid’s acquisition strategy, Rimab will continue operating under its existing brand, and one of its co-founders, currently the COO, will remain with the company and take on the role of CEO.

Rimab’s revenue and earnings have been volatile in recent years. During the COVID-19 pandemic, the company experienced a revenue boost and reported good EBIT margins of around 7–10%, mainly driven by increased disinfection assignments. However, revenue has since declined, leading to a restructuring program carried out in 2023 and 2024. This initiative appears to be yielding results: operating losses narrowed from -8.7 MSEK in 2023 to -1.1 MSEK in 2024, despite a revenue drop from 142 MSEK to 129 MSEK. The company has also phased out low-margin contracts, and the forecast for 2025 suggests a more profitable business, with 100 MSEK in revenue and a 3–5% EBIT margin.

Significant addition to HomeMaid’s B2B Segment

While it was no surprise to us that HomeMaid would continue expanding in the B2B segment through inorganic growth, which has largely been built through acquisitions, the size of this deal was somewhat surprising. Relative to HomeMaid’s own size, this is a large acquisition, representing approximately 20% of the company’s revenue and 8–14% of its EBIT. It notably strengthens HomeMaid’s commercial cleaning segment, which generated 142 MSEK in revenue in 2024. While Rimab’s recent performance may not immediately suggest a high-quality business, it’s important to consider the difficult market environment of recent years. High interest rates and inflation have pressured the B2B cleaning segment, leading many clients to reduce service frequency and scope. Taking a longer-term view, Rimab has a well-established history dating back to 1989 and showed relatively stable performance prior to the pandemic. We believe that if HomeMaid succeeds in realizing synergies and operational improvements, the acquisition could generate long-term value.

The deal will be structured as a cash transaction, consisting of an upfront payment and an earn-out component. The initial payment amounts to 15 MSEK (excluding net cash), and the earn-out is structured so that the total purchase price will equal 5x EBIT based on Rimab’s 2025 financial results. The acquisition will be financed through a mix of internal funds and bank loans, consistent with HomeMaid’s approach to past acquisitions. The revenue and EBIT multiples are clearly low relative to HomeMaid’s own valuation, making the deal attractive from a pricing standpoint, though the visibility of a successful turnaround at Rimab remains limited.

The transaction is expected to close within the coming days. We will include the acquisition in our financial forecasts no later than in connection with HomeMaid’s Q2 report.