Insider information: Wetteri acquires Suvanto Trucks Oy through a 100% share exchange, builds a nationwide sales network for used heavy vehicles

Wetteri Plc  Insider information 11 December 2023, 9.00 EET

Wetteri, an entrepreneur-driven growth company in the automotive sector, will acquire Suvanto Trucks Oy through a 100% share exchange. This is the fourth acquisition in the series. Suvanto Trucks Oy operates in commercial trucks trade and maintenance in Turku, Tampere and Vantaa. The company also has operations in northern Finland. Suvanto Trucks Oy is one of Finland’s largest sellers of used heavy vehicles. The company also serves as a dealer of DAF and Sisu vehicles. Its revenue amounted to around EUR 30 million in the 2022 financial year, and its profit for the period was slightly more than EUR 1 million.

The acquirer in the transaction is Wetteri Plc, to which the entire share capital of Suvanto Trucks will be transferred to in the transaction. The purchase price is EUR 4,160 million. Wetteri Plc will execute a share issue directed to the seller as payment for the purchase price under the Board of Directors’ authorisation to issue shares. The transaction is expected to be completed by the 31 March 2024. Wetteri Plc’s financial guidance will not change due to the planned acquisition.

Aarne Simula, CEO, Wetteri Plc

“This fourth acquisition is a significant step for Wetteri in growing its heavy vehicles business, which is important for the company. As a result of the transaction, we will be the only Finnish operator building a national dealership network for used heavy vehicles. At the same time, our maintenance operations will expand to a nationwide level. One of the goals of our listing on the stock exchange was to concentrate the Finnish automotive sector under Wetteri’s flag, with Wetteri’s shares as a means of payment. This transaction with Suvanto Trucks is based on a 100% share exchange and market is showing interest in similar arrangements in the future.”

Timo Yli-Salomäki, CEO, Suvanto Trucks Oy

“The automotive industry is on its way to a historically great change. The digitization of the industry, changes in car procurement methods, agency model and the change in customer buying behavior do not only affect the passenger car trade, but the waves of change also hit the heavy equipment trade strongly. New thinking and innovation, larger operating units and investments in the future are required from the players in the field. Wetteri will be a pioneer in the changing automotive industry, a rapidly growing and at the same time also developing business Finnish operator, and it is a great pleasure and honor for us to be a part of building the largest automotive operator in our country.”

Suvanto Trucks Oy was founded in 2010 in Turku. It employs around 20 automotive professionals, who will transfer to Wetteri as existing employees. The value of Suvanto Trucks Oy’s inventories is around EUR 8 million. The transaction is expected to be completed by 31 March 2024. The transaction is conditional on the parties’ decisions, due diligence, confirmation of funding, and approval from the Finnish Competition and Consumer Authority. Before the transaction is confirmed, Suvanto Trucks will repurchase its own shares in the amount of EUR 2,7 million and distribute EUR 0,3 million in dividends. The sellers will finance up to 1.2 million euros of the purchase price of their own shares for a maximum of one year.

Further information:

Aarne Simula, CEO, Wetteri Plc

Tel. +358 400 689 613, aarne.simula@wetteri.fi

Timo Yli-Salomäki, toimitusjohtaja, Suvanto Trucks Oy

 Puh. 040 595 8215, timo.yli-salomaki@suvantotrucks.com

Wetteri Plc – an entrepreneur-driven growth company in the automotive sector

Wetteri Plc is an entrepreneur-driven growth company in the automotive sector. The company engages in the retail sales of passenger cars, commercial vehicles and heavy vehicles, and produces maintenance and repair shop services for vehicles, from passenger cars to heavy vehicles.  Headquartered in Oulu, the company has 40 locations in Finland. The company employs around 900 people, of whom nearly 70% work in maintenance and repair services. Wetteri promotes digitalisation in the automotive sector and is an important player on the common journey towards emission-free motoring. More information: sijoittajat.wetteri.fi/en/