Savaria trading halt

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Hi there,

I noticed that Savaria was halted pending news. Well, news came out that they made a recommended cash offer to acquire all the issued and outstanding shares of Handicare Group AB (STO:HANDI) (“Handicare”) for SEK50.00 per share (the “Offer”), representing a total consideration to Handicare shareholders of SEK2.9 billion (CAD452.3 million) and a total enterprise value (including leases) of SEK3.4 billion (CAD521.1 million).

How do you think this will affect their shares tomorrow? I recently sold my position with SIS and am thinking that was bad timing on my part:( What are your thoughts? Thanks!

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Asked on January 27, 2021 3:45 pm
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Private answer

Hey there. Full disclosure, this is a stock Mat and I own, and was a stock we recommended to Premium members back in early 2019.

This is a transformative acquisition. It's very big. You're talking about Savaria, a company with a market cap of $826 million, adding an additional $521 million in enterprise value.

This will more than double Savaria's revenue, and will nearly double adjusted EBITDA (Earnings before interest, taxes, depreciation and amortization).

Revenue for the fiscal year for Handicare came in at $317 million and adjusted EBITDA of $37 million. Savaria, through the first 9 months of 2020, reported revenue of $263 million and adjusted EBITDA of $40.3 million.

Now, this is a BIG acquisition that is going to cost the company a lot of money. We saw the market react negatively towards Couche-Tard because of this. So, I'm cautiously optimistic on the reaction for Savaria tomorrow and in the coming days.

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Posted by Dan Kent
Answered on January 27, 2021 4:17 pm
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Private answer

Hey there. Full disclosure, this is a stock Mat and I own, and was a stock we recommended to Premium members back in early 2019.

This is a transformative acquisition. It's very big. You're talking about Savaria, a company with a market cap of $826 million, adding an additional $521 million in enterprise value.

This will more than double Savaria's revenue, and will nearly double adjusted EBITDA (Earnings before interest, taxes, depreciation and amortization).

Revenue for the fiscal year for Handicare came in at $317 million and adjusted EBITDA of $37 million. Savaria, through the first 9 months of 2020, reported revenue of $263 million and adjusted EBITDA of $40.3 million.

Now, this is a BIG acquisition that is going to cost the company a lot of money. We saw the market react negatively towards Couche-Tard because of this. So, I'm cautiously optimistic on the reaction for Savaria tomorrow and in the coming days.

Marked as spam
Posted by Dan Kent
Answered on January 27, 2021 4:17 pm
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