Harvia Oyj — M&A Activity 2018

Dec 21, 2018

Harvia strengthens its position in the United States by acquiring the business of Almost Heaven Saunas LLC

Harvia strengthens its position in the United States by acquiring the business of Almost Heaven Saunas LLC

HARVIA PLC STOCK EXCHANGE RELEASE 21.12. 2018 at 08:00 EET

Almost Heaven Saunas is one of the leading sauna and spa product companies in
the United States. The acquisition will enable Harvia to offer better and more
extensive service to Harvia's customers in North America.

Almost Heaven Saunas was established in 1978 and has been owned by its current
owner since 2007. The company has grown rapidly in recent years, its revenue
totaling USD 3.5 million in 2014 and approximately USD 9 million in 2017. The
company's main products comprise of United States manufactured outdoor and
indoor saunas of entry price range.Harvia's revenue from North America in 2017
totaled approximately EUR 3 million, of which coming about half through Almost
Heaven Saunas.

Almost Heaven Saunas' rapid growth has taken place at the expense of
profitability, and the earnings before interests, taxes, depreciations and
amortizations (EBITDA) have been somewhat negative for the last two years (2017
and 2018).  Measures for improving profitability will be started immediately
after the transaction is completed. Key measures include discontinuing
unprofitable products, renewing the product portfolio and developing
procurement.

Almost Heaven Saunas has a sales office in Holland, Michigan, and a
manufacturing facility in Renick, West Virginia. Almost Heaven Saunas employs
approximately 40 persons, who will be employed by Harvia Group after the
transaction.

"The acquisition of Almost Heaven Saunas is a significant step in developing our
business in North America. Almost Heaven Saunas has been Harvia's client since
2013. The company's growth has been strong in the last few years, which combined
with the work done with our other clients and distributors has resulted in
positive sales development for Harvia in North America," says Tapio Pajuharju,
CEO of Harvia Plc.

"We will continue Almost Heaven Saunas' business, on top of this we will use it
as a base to build a better service and a more extensive offering for other Key
Customers in North America. The Renick facility provides an opportunity to
establish a warehouse for Harvia's offering in North America. A local warehouse
of our own will especially support the availability of a more extensive offering
and improve Harvia's customer service ability and speed for all our customers in
North America," Pajuharju continues.

Rick Mouw, the CEO and owner of Almost Heaven Saunas, will work for Harvia as a
consultant and support Harvia in taking over Almost Heaven Saunas' business and
managing customer relations.

The transaction is estimated to be completed in January 2019 at the latest. The
debt-free transaction price totals approximately EUR 4 million, and Harvia will
finance it by taking over certain liabilities of the acquired company and by
using its own cash reserves. The transaction has no impact on Harvia's long-term
financial objectives.

Additional information

Tapio Pajuharju, CEO, Tel: +358 50 577 4200

Ari Vesterinen, CFO, Tel: +358 40 505 0440

Harvia in short

Harvia is one of the leading companies operating in the sauna and spa market
globally, as measured by revenue. Harvia's brands and product portfolio are
well-known in the market and the company's comprehensive product portfolio
strives to meet the needs of the international sauna and spa market of both
private and professional customers.

Harvia's revenue totaled EUR 60.1 million in 2017, its operating profit was EUR
9.3 million and adjusted operating profit EUR 10.7 million during the same
period. The company employs some 365 professionals in Finland, China and Hong
Kong, Romania, Austria, Germany and Estonia. The company is headquartered in
Muurame, Finland, adjacent to its largest sauna and sauna component
manufacturing facility.

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