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Third party research

Alcadon: Irish acquisition adds 16% to PF'24e EBITDA - ABG

Alcadon Group

This is a third party research report and does not necessarily reflect our views or values

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Irish-based Wood adds 16% to PF'24e EBITDA
4.6x acquisition EV/EBITDA (ex. earn-outs), takes PF'24e to 6.8x
SEK 75m share issue, 1.8x PF'24e ND/EBITDA (ex. earn-outs)


Acquires Irish-based Wood, adding 16% to PF'24e adj. EBITDA

Alcadon has announced the acquisition of Wood Communications ("Wood"), an Irish-based distributor of network infrastructure with roughly 40% of sales from data centres, 40% from cabling and accessories for commercial properties, and the remaining 20% from the broadband, industrial, and security sectors. The company has more than 500 customers, of which the ten largest account for 50% and the largest accounts for 22%. The acquisition adds 8% and 16% to PF'24e sales and adj. EBITDA, respectively, and has an adj. EBITDA margin of 17.7% which, according to the company, is not abnormal for Wood (we have 9.0% for Alcadon in 2024e).
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