This morning, Zutec announced the acquisition of Createmaster Ltd in the UK. During 2020, Createmaster had sales of SEK 43m (GBP 3.7m) and EBITDA of SEK 4.5m (GBP 0.3m). Thus, this adds 130% to Zutec's LTM net sales of SEK 33m and approximately 100% of our 21/22 full-year estimates. According to Zutec, this acquisition takes the company from less than 1% market share in the UK to over 10%.

On our initial assessment, is that this is a good acquisition as 1) Zutec's market share increases to over 10% in the UK (Zutec's largest market also prior to the acquisition), 2) Createmaster is margin accretive with a track record of solid profitability according to Zutec and 3) multiples paid look substantially lower than Zutec's current trading multiples.

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