Harvia acquires the remaining shares of EOS Group’s German operations

Stock Exchange Release | 27 July 2022

Harvia Plc                                    Inside information                     July 27, 2022 at 2:00 p.m. EEST

Harvia acquires the remaining shares of EOS Group’s German operations

As agreed in the shareholder agreement, Harvia Plc has acquired a 21.4% minority shareholding of EOS Group’s German operations from Mr. Rainer Kunz, Managing Director of EOS Group. The purchase price is EUR 19.0 million. After the transaction, EOS Group’s German operations are fully owned by Harvia.

The shareholder agreement between Mr. Kunz and Harvia was signed on March 18, 2020, when Harvia acquired a majority stake in EOS Group from Mr. Kunz and other shareholders. Mr. Kunz will continue as Managing Director of EOS Group and a member of Harvia’s management team after the transaction. Mr. Kunz currently owns 35,556 Harvia Plc’s shares and he intends to increase his shareholding in Harvia.

Since Harvia’s acquisition in spring 2020, the business of EOS Group has developed favorably. EOS Group’s revenue has grown from EUR 17.3 million in 2019 to EUR 29.5 million for the last 12 months’ period ending in May 2022, driven by the strong performance of German operations. EOS Group’s portfolio consists of premium and professional sauna heaters, control units, steam technologies and a comprehensive range of accessories.

“Since we acquired EOS Group in 2020, its business has developed favorably, giving Harvia an increased penetration and offering in the premium and professional sauna heater and equipment segments. We are happy to acquire the full ownership of EOS Group’s German operations from Mr. Kunz and continue developing the business and our cooperation,” says Tapio Pajuharju, CEO of Harvia Plc. “The contribution of Mr. Kunz for Harvia’s management team has been substantial and we are very pleased to have him continue in this capacity. On top of that, we are pleased with his decision to increase his shareholding in Harvia,” Pajuharju continues.

The purchase price of the minority shareholding, EUR 19.0 million, is based on the same adjusted EBITDA multiple as in the original transaction in 2020, when Harvia acquired the majority of EOS shares. Harvia will finance the acquisition with long-term interest-bearing debt.

The redemption of the remaining minority interest in EOS Group’s German operations affects Harvia’s balance sheet position. The redemption price of the minority interest will be deducted from Harvia’s other non-current liabilities. At the end of March 2022, the contractual amount of the redemption and purchase price liability was EUR 23.5 million. The acquisition will increase Harvia’s interest-bearing net debt by approximately EUR 19.3 million. The arrangement increases the profit for the period attributable to the owners of the parent company by approximately EUR 1.2 million on annual basis, after additional financing costs.

The transaction does not affect Harvia’s ownership in EOS Russia, of which Harvia owns 80.0%.

Harvia will publish its half-year financial report on 11 August 2022. Due to the silent period, Harvia will not give any further comments on this transaction before publishing the half year report. Harvia will hold a webcast conference on the day of the results release. The participants have the opportunity to ask questions during that webcast.

Further information

Tapio Pajuharju, CEO
tel: +358 50 577 4200

Ari Vesterinen, CFO
tel: +358 40 505 0440

The original stock exchange release regarding the acquisition of a majority stake in EOS Group on March 18, 2020: Harvia strengthens its position in the professional and premium sauna solutions by acquiring a majority stake in EOS Group

Harvia is one of the leading companies operating in the sauna and spa market globally, as measured by revenue. Harvia’s brands and product portfolio are well known in the market, and the company’s comprehensive product portfolio strives to meet the needs of the international sauna and spa market of both private and professional customers.

Harvia’s revenue totaled EUR 179.1 million in 2021, of which 79% came from outside Finland. Harvia Group employs more than 800 professionals in Finland, China and Hong Kong, Romania, Austria, United States, Germany, Estonia and Russia. The company is headquartered in Muurame, Finland, adjacent to its largest sauna and sauna component manufacturing facility.

Read more: https://harviagroup.com