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Ambea announces completion of the SEK2.6bn acquisition of Aleris' care operations; presents new group management team.

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NORDIC BUSINESS REPORT-January 22, 2019-Ambea announces completion of the SEK2.6bn acquisition of Aleris' care operations; presents new group management team

(C)2019 M2 COMMUNICATIONS http://www.m2.com

Ambea AB (STO:AMBEA), a leading care provider in Sweden, Norway and Denmark, announced on Monday the completion of the acquisition of Aleris' care operations in Sweden, Norway and Denmark on 21 January 2019.

This acquisition had a purchase price of SEK2.6bn on a debt and cash free basis (enterprise value) and the final purchase price including Aleris care operations' net cash position at closing amounted to approximately SEK3bn.

Reportedly with the closing of this acquisition, Ambea will be the market leading care provider in Sweden, Norway and Denmark.

The annual sales for the new group for the period 1 July 2017 to 30 June 2018 amounted to approximately SEK10,602m, of which Ambea accounted for SEK5,937m and Aleris care for SEK4,665m. Also, these operations have a combined total of approximately 13,100 full time employees and 7,690 beds and placements in own management.

It is expected that this acquisition will create a stable platform for future organic growth and significant potential for direct cost synergies, as well as operational improvements. In addition to direct cost synergies and identified operational improvements, Ambea believes that further efficiency enhancements can be realised over the next two to three years.

According to Ambea, in order to repay part of the financing and to lower its debt in line with the company's long term financial targets, Ambea intends to, in connection with this transaction, carry out a share issue, with preferential rights to existing shareholders, in the amount of approximately SEK1.2bn. This rights issue is expected to be decided upon and completed during the first half of 2019.

As a result of the acquisition of Aleris...

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