Hanza: Expanding in the Northeast
Research Update
2024-12-13
06:45
Redeye takes a positive stance towards Hanza's acquisition of Leden. The ~2x net debt 2025e is well within healthy territory – although a weaker market than expected would likely result in a lower EBITDA – and the product, customer, and geographic rationales are clear and align well with Hanza’s strategy.
Fredrik Nilsson
Key financials
| SEKm | 2023 | 2024e | 2025e | 2026e | 2027e |
| Revenues | 4,154.0 | 4,961.3 | 6,340.8 | 6,847.1 | 7,257.2 |
| Revenue Growth | 16.4% | 19.4% | 27.8% | 8.0% | 6.0% |
| EBITDA | 464.7 | 460.1 | 701.2 | 784.9 | 850.8 |
| EBIT | 328.0 | 262.4 | 478.4 | 548.8 | 601.7 |
| EBIT Margin | 7.9% | 5.4% | 7.6% | 8.0% | 8.3% |
| Net Income | 215.0 | 121.9 | 244.6 | 296.5 | 340.4 |
| EV/Revenue | 0.9 | 0.7 | 0.6 | 0.6 | 0.5 |
| EV/EBIT | 11.2 | 13.1 | 8.5 | 7.3 | 6.6 |
Today, Hanza announced its acquisition of Finnish contract manufacturing company Leden Group Oy, with sales of about SEK1.1bn and an EBITA margin of 7%. Leden consists of four factories in Finland and one in Estonia, and it has a total of roughly 600 employees.
The company focuses on sheet metal mechanics, machining, and complex assembly and primarily targets energy management, medical technology, IT infrastructure, and industrial automation sectors. While the overall customer base overlap with Hanza is non-existent, like its acquirer, Leden has handled the economic downturn well, thanks to its solid and diversified customer base.
In addition to solid finances, customers and geographical presence, Hanza also highlights the cultural match, including decentralized operations.
Disclosures and disclaimers