Hiab (HIAB) investor relations material

Deal rationale and strategic fit

• Acquisition of a leading North American refuse collection vehicle manufacturer expands presence in waste and recycling, a core segment with stable, anti-cyclical demand patterns and strong growth record.

• Aligns with strategy to grow in essential industrial segments, diversifies sales exposure, and is expected to be both margin- and growth-accretive.

• Adds a significant new product vertical, leveraging strong brand positions in automated side loaders, front loaders, and rear loaders.

• Expands North American manufacturing and sales channels, supporting aftermarket business growth and digitalization.

• Fits strategic imperative to be a top player in targeted sub-sectors and geographies, enabling further bolt-on acquisitions and innovation-driven growth.

Financial terms and conditions

• All-cash transaction valued at $1.035 billion (approx. EUR 890 million), representing a 9.2x EBITDA multiple on last 12 months' comparable EBITDA as of March 2026.

• 100% cash consideration, financed with cash at hand and up to EUR 900 million in new debt, with committed financing from Danske Bank and OP Corporate Bank.

• Pro forma gearing expected at 70% post-deal, with a target to return below 50% as cash generation continues.

• Labrie generated USD 491 million in sales and USD 113 million EBITDA (23% margin) for the LTM ending March 2026.

• Acquisition expected to be immediately accretive to both growth and earnings.

Synergies and expected cost savings

• Clear opportunities for sales and procurement synergies, especially in materials sourcing and sales channels, expected to enhance margins and growth.

• Initial estimate for combined synergies is a low double-digit USD million amount per year at EBITDA level.

• Enhanced aftermarket and services penetration expected to drive recurring revenue growth.