Relais makes precision acquisition for the Finnish repair and maintenance business

Translation: Original comment published in Finnish on 10/31/2023 at 1:00 pm EET.

Relais Group company Raskone grows by acquiring Jyväskylä Truck Center, a heavy vehicle repair shop in Jyväskylä. As a result, the geographical coverage of the company's repair business will increase by one new location in Finland. The acquired company will be consolidated into Relais Group from November 2023 and we will take this into account in our Q3 update, when the company's earnings are published on Thursday.

Repair and maintenance services of heavy and commercial vehicles

Jyväskylä Truck Center is a company specializing in repair and maintenance services for heavy and commercial vehicles, operating from one location in Jyväskylä. It provides maintenance services for all heavy and commercial vehicles, regardless of make, and is an official Iveco dealer.

In 2022, the acquired company’s net sales totaled just under EUR 1.7 million and EBIT just over EUR 0.1 million, corresponding to an EBIT margin of 7.5%. The company has rocketed from a small size and has grown briskly, with net sales of only EUR 0.7 million in 2018 and a slightly loss-making result. The workshop will retain its name and the company's founders Petri Hänninen and Iiro Sundqvist will continue as workshop managers, supporting the continuity of operations after the acquisition.

Source: Enento Group

Acquired company fits well into the Group's service business

The acquired company fits quite naturally into Relais' repair and maintenance business and thus we consider the small bolt-on acquisition to be quite compatible with Relais and fully in line with the company's strategy. Based on last year's figures, Jyväskylä Truck Center's net sales correspond to around 0.6% and EBIT to 0.5% of Relais Group's forecasts for the current year.

The acquisition price was not disclosed, but our rough estimate is that it will be in the range of EUR 0.6-1 million that is relatively modest for a company of Relais' size. Thus, the company's financial position puts it in a very good position to make a complementary acquisition. We will include the acquisition in our forecasts in connection with the Q3 report to be published on Thursday this week.