Puuilo Oyj

M&A Activity • Sep 19, 2023

Disclosure 437383

Puuilo Oyj - Inside information

Inside information: Puuilo will accelerate its growth and acquire the business operations of Hurrikaani discount store chain

PUUILO PLC, INSIDE INFORMATION, 19.9.2023 at 10.15 EEST

Puuilo will acquire discount retail chain Hurrikaani’s Nokia, Ylöjärvi and Forssa stores and gradually convert them into Puuilo stores during the first half of financial year 2024. In 2022, the net sales of the acquired business totalled approximately EUR 15 million. The purchase price will not be disclosed. Hurrikaani’s personnel (appr. 38 employees) will transfer to Puuilo as so-called old employees in the stores belonging to the transaction.

The completion of the transaction is subject to approval of competition authorities and the fulfilment of other customary closing conditions. The acquisition is expected to be completed in stages during the first half of financial year 2024.

"With this acquisition, Puuilo's growth will accelerate. We had a unique opportunity to expand to three new cities that we have been looking for some time. Hurrikaani has been a well-known local player in the Finnish discount retail market, and we believe that the business acquired under the Puuilo concept will grow strongly in the coming years. This acquisition fits well with our strong growth strategy. At the same time, I warmly welcome the employees transferring from Hurrikaani to the Puuilo team," says Juha Saarela, CEO of Puuilo.

**Financial impact of the transaction

**The acquisition will not have an impact on Puuilo's net sales or adjusted EBITA for the financial year 2023 and it is not expected to have a significant impact on Puuilo's financial position. The acquisition is estimated to increase Puuilo's growth rate from the financial year 2024 onwards. The acquired three stores will increase the number of new store openings compared to the historical opening rate, meaning Puuilo may open a total of approximately 7 new stores in the financial year 2024. After the conversion and ramp-up, the acquired three stores are estimated to generate net sales totalling approximately EUR 15–30 million annually starting gradually from 2024 onwards. Correspondingly, the impact on the adjusted EBITA is estimated to be EUR 3–5 million annually and gradually starting from 2024 onwards. Puuilo will specify the outlook for future financial years separately in connection with the financial statements release, business reviews and half-year reports.

PUUILO PLC

Contacts:

Juha Saarela, CEO, mob. +358 50 409 7641

Ville Ranta, CFO, mob. +358 40 555 4995

Email: ir (@) puuilo.fi

Pictures for media: https://www.puuilo.fi/medialle