Boreo acquires Elfa Distrelec sales activities in Finland and the Baltics
Boreo has signed an agreement to acquire the sales activities of Elfa Distrelec in Finland, Latvia, Estonia and Lithuania from RS Group.
Boreo acquires the sale businesses via its subsidiaries and, upon completion, will create a new YE RS business by combining the acquired Elfa Distrelec activities with its existing RS activities currently operated within Yleiselektroniikka, YE International AS, YE International SIA and UAB YE International.
Following the completion of the transaction, YE RS will become a "high-service, digital-led distributor of industrial and MRO products in Finland and the Baltics," the company writes in a press release.
The sales businesses employ ten professionals in Finland and the Baltic countries and in 2024, the revenue was approximately EUR 15 million. The Transaction consists of three business acquisitions in the Baltic countries and the acquisition of shares in Finland.
The "Enterprise Value" for the transaction is EUR 5.5 million based on the sale businesses' adjusted annual operating profit of approximately EUR 1.1 million.
“Our history with RS dates back to early 1990s’ and we are delighted to strengthen the long-standing partnership with RS and continue creating value in our markets. The strong alignment of RS and Boreo to drive sustainable long-term growth, build on partnerships and high standards of business ethics create a strong foundation for the partnership and success. We are excited of the opportunity to create a new integrated growth platform, with attractive investment opportunities and an opportunity to create value for our customers”, says Boreo CEO Kari Nerg.
Completion of the transaction is subject to customary closing conditions including regulatory approvals in Finland and Estonia and is expected to close in the third quarter of 2025.
