Randoncorp (RAPT4) M&A Announcement summary

Deal rationale and strategic fit

• Acquisition aligns with the internationalization strategy, expanding presence in Europe and strengthening the aftermarket segment for commercial vehicle parts.

• EBS brings a strong brand, technological leadership, and a resilient revenue base, complementing the existing product portfolio.

• Supports strategic pillars: internationalization, aftermarket growth, portfolio expansion, and entry into resilient segments.

• Enhances presence in developed economies and consolidates position in the European market.

• Diversifies revenue sources and reduces dependence on domestic markets.

Financial terms and conditions

• Transaction valued at £56 million (approx. R$410 million), subject to contractual adjustments, with 100% of EBS shares to be acquired.

• Acquisition multiple of 7.6x EV/EBITDA based on 2023 figures.

• Funding split between Brazil (R$230 million) and UK (£31 million), with full payment at closing.

• EBS generates BRL 290 million (GBP 40 million) in revenue with an 18% adjusted EBITDA margin.

Synergies and expected cost savings

• Revenue synergies from new portfolios, brands, and expanded customer base in Europe and Latin America.

• Cost synergies through access to EBS's global suppliers, increased bargaining power, and backoffice cost dilution.

• Greater logistical efficiency and access to over 1,200 new customers.

• Administrative and supply chain synergies are projected to lower cost multiples within two to three years.

• Synergies will be realized through cross-selling, sourcing optimization, and leveraging global supply chains.