HARVIA PLC STOCK EXCHANGE RELEASE 21.12. 2018 at 08:00 EET
Almost Heaven Saunas is one of the leading sauna and spa product companies in the United States. The acquisition will enable Harvia to offer better and more extensive service to Harvia's customers in North America.
Almost Heaven Saunas was established in 1978 and has been owned by its current owner since 2007. The company has grown rapidly in recent years, its revenue totaling USD 3.5 million in 2014 and approximately USD 9 million in 2017. The company's main products comprise of United States manufactured outdoor and indoor saunas of entry price range.Harvia's revenue from North America in 2017 totaled approximately EUR 3 million, of which coming about half through Almost Heaven Saunas.
Almost Heaven Saunas' rapid growth has taken place at the expense of profitability, and the earnings before interests, taxes, depreciations and amortizations (EBITDA) have been somewhat negative for the last two years (2017 and 2018). Measures for improving profitability will be started immediately after the transaction is completed. Key measures include discontinuing unprofitable products, renewing the product portfolio and developing procurement.
Almost Heaven Saunas has a sales office in Holland, Michigan, and a manufacturing facility in Renick, West Virginia. Almost Heaven Saunas employs approximately 40 persons, who will be employed by Harvia Group after the transaction.
"The acquisition of Almost Heaven Saunas is a significant step in developing our business in North America. Almost Heaven Saunas has been Harvia's client since 2013. The company's growth has been strong in the last few years, which combined with the work done with our other clients and distributors has resulted in positive sales development for Harvia in North America," says Tapio Pajuharju, CEO of Harvia Plc.
"We will continue Almost Heaven Saunas' business, on top of this we will use it as a base to build a better service and a more extensive offering for other Key Customers in North America. The Renick facility provides an opportunity to establish a warehouse for Harvia's offering in North America. A local warehouse of our own will especially support the availability of a more extensive offering and improve Harvia's customer service ability and speed for all our customers in North America," Pajuharju continues.
Rick Mouw, the CEO and owner of Almost Heaven Saunas, will work for Harvia as a consultant and support Harvia in taking over Almost Heaven Saunas' business and managing customer relations.
The transaction is estimated to be completed in January 2019 at the latest. The debt-free transaction price totals approximately EUR 4 million, and Harvia will finance it by taking over certain liabilities of the acquired company and by using its own cash reserves. The transaction has no impact on Harvia's long-term financial objectives.
Tapio Pajuharju, CEO, Tel: +358 50 577 4200
Ari Vesterinen, CFO, Tel: +358 40 505 0440
Harvia in short
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 60.1 million in 2017, its operating profit was EUR 9.3 million and adjusted operating profit EUR 10.7 million during the same period. The company employs some 365 professionals in Finland, China and Hong Kong, Romania, Austria, Germany and Estonia. The company is headquartered in Muurame, Finland, adjacent to its largest sauna and sauna component manufacturing facility.