Thule Group (THULE) M&A Announcement summary

Deal rationale and strategic fit

• Quad Lock is a global leader in performance phone mounts, aligning with the acquirer's strategy to build market leadership in high-growth, enthusiast-driven niches and attractive product categories.

• Both brands target outdoor enthusiasts, share a culture of quality and innovation, and complement each other's geographic strengths, with Quad Lock strong in North America and APAC.

• The acquisition expands presence in APAC, DTC channels, and the motorbike segment, supporting strategic growth objectives and 2030 financial targets.

• Quad Lock's product-driven growth and innovation track record complement the acquirer's strategy of extending market positions through add-on acquisitions.

• The deal supports progress toward SEK 20 billion in sales and at least 20% EBIT margin by 2030.

Financial terms and conditions

• Enterprise value is AUD 500 million (approx. SEK 3.6 billion), representing a 10x EBITDA multiple.

• 79% of the purchase price is financed with cash and credit, 21% with newly issued shares (1.9% of total shares), and 1% as deferred performance-based compensation for key management.

• Shares issued at SEK 351 each, increasing total shares by 2.1 million; transaction costs expected at SEK 100 million in Q4 2024.

• Deferred performance incentives for key management can reach SEK 90 million by end of 2027.

• Pro forma leverage is expected to be 2.0x at the end of 2024; transaction is accretive to EPS, sales growth, EBIT, and EBITDA margin.

Synergies and expected cost savings

• Opportunities exist to expand Quad Lock’s presence in Europe using the acquirer's distribution network, especially in bike and outdoor segments.

• The acquirer expects to benefit from Quad Lock’s expertise in DTC sales, digital marketing, and electronics, including wireless charging for motorcycles.

• Joint innovation and product development are expected to accelerate growth; both companies anticipate knowledge sharing in DTC, technology, and logistics.

• No immediate manufacturing synergies are planned; focus is on distribution and development.

• Increased DTC sales from 7% to 15% and APAC sales from 5% to 10% of total sales.