Solar (SOLAR) M&A announcement summary

Deal rationale and strategic fit

• Acquisition creates a leading electrical distributor in Norway, combining strong industry, installation, and B2B market positions, and expanding into ventilation and climate/energy solutions.

• The combined entity will offer 25,000 SKUs and generate annual revenue of approximately DKK 2.5 billion.

• Both companies share similar business models, cultural values, and a focus on sustainability, supporting smooth integration and enhanced value proposition.

• Sonepar brings a loyal customer base, highly skilled employees, and a strong platform, especially in installation.

• The combined business will offer energy-efficient and sustainable solutions, enhancing its market offering.

Financial terms and conditions

• Sonepar Norge is valued at DKK 315m enterprise value and DKK 225m equity value.

• The deal is financed by one-third equity via accelerated bookbuilding and two-thirds debt from Danske Bank and Nordea.

• Combined annual revenue is projected at DKK 2.5bn, with Solar contributing DKK 700m and Sonepar DKK 1,800m.

• Majority shareholder will participate pro rata and guarantee the transaction.

• Expected acquisition costs of DKK 5m in 2025; transition costs estimated at DKK 60m, with DKK 30m in freed up capital from reduced net working capital.

Synergies and expected cost savings

• DKK 60 million in synergies expected, mainly from scale efficiencies in IT, operations, and distribution.

• Operational and commercial synergies will unlock significant growth and enhance earnings, with normalized annual EBITDA estimated at DKK 60m including synergies.

• Additional revenue will leverage existing distribution infrastructure with minimal incremental cost.

• Consolidation of operations, administration, logistics, and IT infrastructure to drive efficiencies.

• AlphaStore warehouse can handle 10–20% more volume without extra staff, reducing cost to serve.