Vestum strengthens its position in moisture protection and water and wastewater systems through acquisition of two niche companies with total sales of SEK 218 million

Vestum AB (publ) (”Vestum”) has – through Vestum Sweden AB – agreed to acquire 100% of the shares in Isodrän AB (”Isodrän”) and MDT Markvaruhuset AB (“MDT”). The companies will be included in Vestum’s Infrastructure segment. In the fiscal year of 2021, Isodrän and MDT generated aggregated sales of SEK 218 million. The purchase price will be paid through payment in cash and issuance of shares in Vestum, resulting in a dilution of approximately 1.9%.

About Isodrän and MDT

Isodrän

Isodrän was founded in 1992 and is a supplier of heat insulation and drainage products for moisture protection. Isodrän has a nationwide network of resellers and markets itself to the repair, conversion and extension (“ROT”) sector. Application areas for the company's products include house foundations, roof structures, sporting surfaces, retaining walls and stairs.

Isodrän has 13 employees and is headquartered in Jordbro.

MDT

MDT was founded in 1982 and is a specialised building materials reseller with products for water and wastewater systems, moisture protection and foundations. MDT currently operates two facilities in Sweden. In addition to a wide product range, the company offers tutorials and courses to its customers to find solutions for projects and the design phase. At the company’s exhibition in the Arninge facility, customers can study a wide range of solutions for, e.g. moisture protection systems and wastewater treatment methods, while receiving advice from the company's well-trained and experienced staff.

MDT has 19 employees and is headquartered in Länna.

Comments from Conny Ryk, CEO of Vestum:

Today, I am very happy to be able to present two incredible companies in Isodrän and MDT! Both companies are attractively positioned on the growing moisture protection, which is characterised by low cyclicality. Isodrän has been on the market for 30 years and has a strong brand in the moisture protection industry. Together with our portfolio company Pordrän, we will continue to develop the operations, both in Sweden and internationally. MDT is a specialised company with extensive knowledge in water and wastewater systems, moisture protection and foundations, and with the potential to roll out the concept to additional regions. In summary, Vestum is complemented by two niche companies with a distinct focus on the infrastructure and ROT (repair, conversion and extension) industries, says Conny Ryk, CEO of Vestum.

About the transaction

The purchase price will be paid through payment in cash and issuance of 7,106,274 shares in Vestum through offset issues. This will result in a dilution of approximately 1.9%. The subscription price has been determined via a ten-day volume-weighted average price ("VWAP") in Vestum's share during the period 28 June 2022 up to and including 11 July 2022. The sellers have undertaken not to sell the subscribed shares for a period of 24 months (“lock-up”).

The number of outstanding shares would increase in connection with the transaction from the existing 367,644,450 to 374,750,724 shares.

The above information on dilution and number of shares is based on previously announced offset issues.

Completion of the acquisition

The acquisition is subject to customary closing conditions, including merger control clearance. In connection with the completion of the transaction, the Board, backed by an authorization of the Annual General Meeting, will make a formal decision to issue the shares in the offset issue.

Adviser

Svalner provides financial advice and Cirio acts as legal adviser to Vestum in connection with the acquisition.

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Vestum's shares are listed on the Nasdaq First North Growth Market.

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