Relais has announced that it will acquire Swedish maintenance workshop chain STS Sydhamnens Trailer Service AB for a EUR 9.2m cash consideration and a maximum EUR 2.2m earn-out. According to Relais, in 2021 STS is expected to have EUR 23m sales and EUR 1.2m EBITDA. Relais anticipates EUR 0.5-1m annual synergies by 2023, mainly from sourcing, leading to a 2021E EV/EBITDA multiple of 5.2-6.7x with the full earn-out and synergies included. We see further synergy potential due to cross-fertilisation opportunities. Relais continues to work towards its target of a EUR 500m pro forma top line by 2026, which we view as achievable through M&A in the fragmented Nordic market. We derive a DCF and multiples-based fair value range of EUR 24.2-29.6 per Relais share. Marketing material commissioned by Relais Group Oyj.

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