LONDON, Sept. 27, 2024 /PRNewswire/ -- Global Auto Holdings (TopCo) Limited ("GAHL") is pleased to announce that it has entered into a definitive agreement to acquire K.W. Bruun Import A/S and K.W. Bruun NxT A/S (collectively, "KWB"), one of the largest Automotive Distributors in the Nordics with operations focused across Denmark and Sweden. The acquisition remains subject to customary regulatory and certain OEM approvals. It is anticipated that the acquisition will be completed prior to calendar year end 2024.
KWB has a corporate history in the automotive industry dating back over 100 years and currently imports and distributes new vehicles and OEM branded spare parts for Peugeot, Citroen, DS, Opel and Mitsubishi within Denmark and Sweden as well as additional brands, including certain Chinese OEMs, within Denmark. KWB operates under long term contracts with its respective OEM partners and distributes into a captive, primarily third party owned dealership network spanning over 210 dealerships throughout Denmark and Sweden. The business is high margin, resilient and highly free cash flow generative throughout the business cycle with a strong market share position in both Denmark and Sweden.
GAHL commented:
"The acquisition represents a clear strategic fit for GAHL and is highly complimentary based on GAHL's stated strategic objectives of driving operational excellence, pursuing diversification across multiple dimensions and allocating capital with a focus on strong free cash flow while maintaining a strong balance sheet and credit metrics. KWB's business is asset lite, highly free cash flow generative and expands our business into an attractive component of the auto retail value chain while creating a better diversified, higher margin and enhanced free cash flow generative combined business.
Following the successful completion of the Lookers acquisition along with a dedicated UK leadership team driving solid operational results within that platform, we believe the timing is right to pursue this highly accretive and attractive acquisition. KWB has a strong long term track record of generating industry leading financial results and requires no material integration given the high quality of the business and its leadership team. KWB will continue to be led by its high performing executive team including CEO Kenneth Hansen and CCO Tobias Pettersson along with their colleagues. We look forward to supporting the KWB team as it continues to pursue its goal of driving industry leading results over the long term. We also look forward to welcoming Kenneth to the GAHL Global Executive Committee."