Lyckegård Group AB (publ) (OM : LYGRD) entered into an agreement to acquire KSAB Golf Equipment Aktiebolag for SEK 67.2 million on April 5, 2023. The purchase price amounts to SEK 52.8 million in a combination of cash of SEK 26.55 million and newly issued shares in Lyckegård worth SEK 26.25 million and a potential additional purchase price of a maximum of SEK 14.4 million, provided that certain operational goals and conditions are met. In order to finance the cash portion of the Initial Purchase Price, Lyckegård intends to carry out a new share issue of at least approximately SEK 18.5 million aimed at Swedish and international professional and private investors (the "Directed Issue") and the remaining balance SEK 8.05 million is intended to be financed with the existing loan facility.

KSAB will be part of Lyckegård's Water business area, which will be led by KSAB's current CEO Kent Stenberg. In connection with the acquisition, Kent Stenberg and other people in the management function have undertaken to continue their employment at KSAB for at least 36 months after the acquisition is completed. KSAB had a total turnover of approximately SEK 108 million and an adjusted EBITDA of SEK 10.8 million in 2022 with an adjusted EBITA of SEK 10.5 million.

The acquisition is expected to increase the group's operating margin immediately, create significant cost synergies as well as deliver improved earnings per share in the first full year after completion. Fredersen Advokatbyrå Ab acted as legal advisor of Lyckegård.