29.1.2020 19:31:39 CET | Brødrene Hartmann A/S | Inside information
Brødrene Hartmann A/S ('Hartmann') has entered into an agreement with the
shareholders of Mohan Fibre Products Pvt. Ltd. ('Mohan Fibre') for the
acquisition of the company, which sells moulded-fibre packaging to egg and apple
producers in India with a particular focus on the northern states of Himachal
Pradesh, Punjab and Haryana.
The purchase price is DKK 119 million, corresponding to an EBITDA multiple of
around 9. The transaction will strengthen Hartmann's earnings per share (EPS)
immediately after the acquisition, which is expected to be completed by mid-2020
conditional on a formal authority approval of Hartmann as a buyer.
Profitable business in an attractive market
Mohan Fibre operates a factory near the city of Chandigarh, which is located
around 250 kilometres north of New Delhi. In 2019, Mohan Fibre is expected to
generate revenue around DKK 75 million and EBITDA around DKK 13 million based on
current exchange rates.
Mohan Fibre is India's largest and leading manufacturer of quality egg and fruit
packaging. The transaction establishes a solid platform for Hartmann in the
attractive Indian market, which is characterised by a favourable demographic
development and increasing egg and fruit production. The combination of
population growth and rising urbanisation in the coming years forms a solid
foundation for continued development of the retail industry and increasing
demand for quality egg packaging. In addition, the penetration of moulded-fibre
packaging for protection of fruit is expected to increase as supply chains are
professionalised.
'Mohan Fibre is a profitable company and will improve our earnings from day one.
The acquisition marks a strategic decision to enter into the great Indian market
in which we see significant growth potential,' says Torben Rosenkrantz-Theil,
CEO of Hartmann.
The expansion is in line with Hartmann's strategy 'Think ahead', which also
entails significant investments in existing markets. In 2020, Hartmann will
complete a significant capacity expansion in Europe with a particular focus on
the British and Southern European markets, significantly expand the existing
factory in the US and open a new factory in Brazil.
The acquisition is financed within the framework of the group's existing credit
facilities.
Outlook for 2019 and 2020
Hartmann maintains expectations to 2019 of reaching the upper end of the DKK
2.2-2.4 billion range after restatement for hyperinflation and a profit margin
around 11% before special items and restatement for hyperinflation. Capital
expenditure for 2019 is expected to amount to about DKK 200 million before
restatement for hyperinflation against former expectations of around DKK 250
million.
The outlook for 2020 will be presented in the annual report for 2019, which will
be released on 10 March 2020.
CONTACTS
* Torben Rosenkrantz-Theil, CEO, (+45) 45 97 00 57
ABOUT BRØDRENE HARTMANN A/S
Hartmann is the world's leading manufacturer of moulded-fibre egg packaging, a
market-leading manufacturer of fruit packaging in South America and one of the
world's largest manufacturers of technology for the production of moulded-fibre
packaging. Founded in 1917, Hartmann's market position builds on its strong
technology know-how and extensive experience of sustainable moulded-fibre
production dating back to 1936. Hartmann sells egg and fruit packaging to
manufacturers, distributors and retail chains, which are increasingly demanding
sustainable packaging solutions and specialised marketing expertise. Our
versatile product portfolio is customised to accommodate customer and consumer
needs in each individual market. Hartmann sells machinery and technology to
manufacturers of moulded-fibre packaging in selected markets. Headquartered in
Gentofte, Denmark, Hartmann has 2,000 employees. Hartmann's production platform
consists of 12 factories in Europe, Israel and North and South America.
ATTACHMENTS
* 200129_Company announcement.pdf
[https://via.ritzau.dk/ir-files/13559582/670/721/200129_Company%20announcemen
t.pdf]
Attachments:
200129_Company announcement.pdf
Attachments
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Disclaimer
NASDAQ OMX Nordic - NASDAQ OMX Stockholm AB published this content on 29 January 2020 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 29 January 2020 18:34:01 UTC
