Balco strengthens customer offering through acquisition of Stora Fasad AB
On February 10, Balco Group AB entered into an agreement on and completed the acquisition of all shares in the company Stora Fasad AB. Access has taken place today and the acquisition will be consolidated from 1 January 2021. The acquisition is expected to make a positive contribution to earnings per share as early as 2021.
The purchase price, which was settled in cash, amounts to 20 MSEK, as well as a variable additional purchase price based on the company’s future development in 2021–2023 and expires in 2024. Balco estimates that the additional purchase price may amount to approximately 10 MSEK based on expected development for the acquired company. The acquisition is financed through existing cash and cash equivalents. The shares are acquired from Stora Fasad Entreprenad SFE AB.
Stora Fasad is a company that offers facade work, such as masonry and plastering, as well as window replacement, balcony and roof, for renovations and repairs as well as for new production, as well as related services such as scaffolding work.
The acquisition strengthens and complements Balco’s product and customer offering. With complete facade renovation, Balco can take responsibility for the turnkey contract in larger projects with both balcony and facade renovation. Initially, the focus is on the Swedish market, but soon we will look at an expansion to other countries where Balco is active.
Stora Fasad had sales of approximately 30 MSEK in 2020 with an operating profit of approximately 5 MSEK. The company’s order backlog amounts to approximately 30 MSEK. Stora Fasad will continue to be run by the current management as a completely independent company within the Balco Group, strengthened with the resources and expertise that a larger group can provide. Christer Thane remains as Managing Director.
” The acquisition of Stora Fasad is in line with Balco’s growth strategy and with the company’s increased focus on sustainability. Through the acquisition, we strengthen our market position as we can offer a turnkey contract in projects that include both balcony and facade renovation. ”, says Kenneth Lundahl, President and CEO of Balco Group, in a comment.
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