Ferronordic grows network in Germany with the addition of workshop in Limburg
Ferronordic has signed an agreement to acquire Thomas Nutzfarzeuge GmbH and the related real estate (“Thomas”). Thomas is an authorised Volvo and Renault Trucks workshop in Limburg, Hessen.
The acquisition is in line with Ferronordic’s strategy to expand and improve its service network in Germany. In 2019 and 2020, Thomas had an average annual revenue of EUR 4.8m (SEK* 49m) with an average operating profit of approx. EUR 0.8m (SEK* 8m).
Thomas Nutzfahrzeuge GmbH is operating a workshop for service and maintenance of trucks and buses in Limburg an der Lahn, located on the A3 motorway between Frankfurt and major cities like Bonn, Cologne and Düsseldorf. Through its subsidiary, Thomas Service GmbH, the company also operates a small rental business. Thomas currently has 22 full-time employees.
Through the acquisition, Ferronordic will gain a strategic position in an important part of Hessen. The Limburg area has a significant population of Volvo and Renault trucks and is important to Ferronordic’s objective of expanding its service network to grow market share and increase its aftermarket business in Germany.
The total investment including real estate amounts to EUR 6.4m (SEK* 64m). The preliminary purchase price for the shares in Thomas is EUR 2.9m (SEK* 29m), based on EUR 0.5m (SEK* 5m) of expected net asset value and EUR 2.4m (SEK* 24m) of goodwill. Ferronordic will also acquire the real estate where the business is operated for a purchase price of EUR 3.5m (SEK* 35m).
The transaction is expected to be completed in April 2021. Thomas will be integrated in Ferronordic’s German business during 2021.
Lars Corneliusson, Ferronordic’s CEO, comments: “Thomas Nutzfarzeuge is a great workshop in a strategic location that is operated with a clear customer focus, fully in line with our strategy and values. We are very excited about this acquisition and look forward to welcoming all Thomas employees to Ferronordic. Together, we will continue to build a leading service and sales company in Germany”.
*According to the EUR/SEK exchange rate per 3 March 2021.
Ferronordic is a service and sales company in the areas of construction equipment and trucks. It is the dealer of Volvo Construction Equipment and certain other brands in all of Russia and Kazakhstan, aftermarket partner of Volvo Trucks and Renault Trucks in part of Russia, and dealer of Volvo Trucks and Renault Trucks in part of Germany. The company also offers contracting services where it owns and operates equipment to carry out works for customers. Ferronordic began its operations in 2010 and now has more than 90 outlets and about 1,400 employees. Ferronordic’s vision is to be regarded as the leading service and sales company in its markets. The shares in Ferronordic AB (publ) are listed on Nasdaq Stockholm. www.ferronordic.com
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