Lehto Group Plc
28 April, 2022 at 7.30 a.m. (EET)
On 28 April 2022, Lehto has signed an agreement to sell its pipeline renovation business to Renevo Group Oy (“Transaction”). The Transaction comprises the entire share capital of Remonttipartio Oy, a wholly owned subsidiary of Lehto, with enterprise value (EV) of EUR 30.0 million. The final purchase price will be determined on the basis of interest-bearing liabilities, cash and net working capital at the time closing of the Transaction. Closing of the Transaction is subject to fulfilment of the typical contractual terms of acquisitions and also to the approval by the competition authorities. It is expected that the Transaction is completed by the end of June 2022. The purchase price will be paid in cash at closing.
Upon completion, the transaction will result in a non-recurring positive impact of approximately EUR 30 million on the Group's net income and equity, and a non-recurring positive impact of approximately EUR 29 million on net cash flow. The transaction will significantly improve Lehto's financial position and equity ratio.
The net sales of the pipeline renovation business in 2021 were EUR 31.8 million and its effect on the Group's operating result was EUR 4.2 million positive. At the end of March 2022, 121 people worked in the business.
Lehto will present the pipeline renovation business as a discontinued operation in the IFRS consolidated income statement for January-June 2022, which will be published later.
Estimated effects of the transaction on Lehto's key figures:
- Estimated non-recurring effects
- The result for the financial year 2022 will improve by approximately EUR 30 million.
- Equity will improve by approximately EUR 30 million.
- Net cash flow in 2022 will improve by approximately EUR 29 million.
- The equity ratio will improve by about 6-7 percentage units.
- The impact of the sale of the business on net sales and operating profit in 2022
- Net sales from continuing operations is decreased by approximately EUR -36 million.
- Operating result from continuing operations is decreased by approximately EUR -5 million.
The following table shows Lehto's net sales and operating result for 2021 excluding the pipeline renovation business:
|Year 2021continuing operations, EUR million||Without pipeline renovation business||Pipeline renovation business||Total (reported previously)|
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