Panostaja to Sell KL-Varaosat to Oy Kaha Ab

Panostaja Oyj              Stock Exchange Bulletin, inside information      May 29, 2019              12 noon        

Panostaja to Sell KL-Varaosat to Oy Kaha Ab

Together with other owners of KL-Parts Oy, Panostaja has signed an agreement on selling the majority of KL-Parts Oy’s share capital to Oy Kaha Ab. The trade will make Kaha the majority owner of KL-Parts. The management of KL-Parts will continue with the company as a minority shareholder. KL-Parts owns 100% of KL-Varaosat Oy.

Panostaja’s holding in KL-Parts Oy is 75%. The trade involves Panostaja relinquishing its ownership in the company entirely. The total debt-free sale price of the shares is estimated to be MEUR 6.4, of which Panostaja’s share after the deduction of interest-bearing net liabilities and costs related to the sale will be about MEUR 4.7. Once the deal has been completed, Panostaja Group will record about MEUR 2.7 in sales profit before taxes.

KL-Varaosat will continue as an independent company, with Juha Kivinen as its CEO.

“We have made determined long-term efforts to develop KL-Varaosat, and we are happy with the investments made. Particularly the strategic development projects carried out with the company’s management have supported profitable growth in recent years. Now is the time to divest and help the company reach the next phase of its growth with a new owner. The divestment is in keeping with our strategy and supports our objective of actively developing our own portfolio. I would like to thank the entire staff of KL-Varaosat for their amazing work and our very educational journey together,” says Panostaja’s CEO Tapio Tommila.

KL-Varaosat has been owned by Panostaja since 2007. During Panostaja’s ownership, the company’s operations have been expanded to new geographical areas, new premium car brands have been added to the selection and concerted efforts have been made to develop the service concept. During Panostaja’s ownership, the company has tripled its net sales and exhibited excellent development in shareholder value.

“Kaha, which is known for high-quality operations and products throughout the field, has been an excellent long-time partner for us and is a natural choice to assume ownership of KL-Varaosat. Majority ownership is now being handed over from one first-rate company to another. It has been wonderful to cultivate KL-Varaosat into a nationwide force in our smooth cooperation with Panostaja as well as our Board and expert staff. That said, Kaha is an excellent owner that will continue the development efforts with us from here on out,” says CEO of KL-Varaosat Juha Kivinen.

“KL-Varaosat is a strong company that has done an excellent job in terms of its services. The company is known for its customer-oriented approach and principles of continuous development. We are extremely interested in this new cooperation which provides us with the opportunity to expand distribution and expedite the company’s growth. The growth-oriented and committed management of KL-Varaosat has done a wonderful job in developing the company, and we are looking forward to even closer cooperation than before,” says Kaha’s CEO Bengt Wahlberg.

Once the deal has been completed, KL-Parts will be fully removed from Panostaja Group’s profit/loss from continuing operations for the review period and reference period. Without KL-Parts, Panostaja Group’s comparable net sales and EBIT from continuing business operations for the 2018 financial period stood at MEUR 185.2 and MEUR 4.1, respectively.

During the financial periods of November 1, 2017–October 31, 2018 and November 1, 2016–October 31, 2017, KL-Parts Group’s net sales and EBIT were as follows (IFRS):

KL-Parts Group’s balances on October 31, 2018 and October 31, 2017 were as follows:

Panostaja Oyj

Tapio Tommila

CEO

More information:

Tapio Tommila, CEO, Panostaja Oyj, +358 (0)40 527 6311, tapio.tommila@panostaja.fi

Juha Kivinen, CEO, KL-Parts Oy, +358 (0)40 563 2670, juha.kivinen@kl-varaosat.fi

Bengt Wahlberg, CEO, Oy Kaha Ab, +358 (0)400 500 738, bengt.wahlberg@kaha.fi

Panostaja is an investment company developing Finnish SMEs in the role of an active majority shareholder. The company aims to be the most sought-after partner for business owners selling their companies as well as for the best managers and investors. Together with its partners, Panostaja increases the Group's shareholder value and creates Finnish success stories. After the divestment of KL-Varaosat, Panostaja will have a majority holding in eight investments. Panostaja’s shares (PNA1V) are quoted on the Nasdaq Helsinki Stock Exchange. In the 2018 financial year, the Group’s net sales totaled MEUR 199.7. www.panostaja.fi

Established in 1979, KL-Varaosat is a specialized spare parts provider engaged in the import, wholesale and retail of original spare parts and supplies for Mercedes-Benz, BMW, Volvo and Audi cars. The company has offices in Tampere, Jyväskylä, Rovaniemi, Raisio, Lahti and Vantaa. Its clients include auto body shops, ServicePartner repair shops and private persons. The company’s CEO is Juha Kivinen. In 2018, the company’s net sales stood at MEUR 14.4, and the company employed 47 people. www.kl-varaosat.fi

In operation since 1934, Kaha is an importer and wholesaler of spare parts and accessories for cars and commercial vehicles as well as tools and components for the automotive industry. The company is part of the Nordic KGK Group. The company’s product selection consists of brand products of well-known and respected international manufacturers, which are sold through an extensive retail network in Finland. In addition to this, the company provides its customers with professional technical services, training, marketing materials and fast deliveries. Kaha is a member of the European ATR Group. In 2018, the company’s net sales stood at MEUR 80.4, and the company employed 150 people. https://kaha.fi/