Pegroco Invest AB acquires JOOL Capital Partner AB’s financial operations

Pegroco Invest AB (“Pegroco”) has entered into a share sale and purchase agreement regarding the acquisition of a number of JOOL Capital Partner AB’s operating subsidiaries. The transaction expands and broadens Pegroco’s company portfolio at the same time as it strengthens the company’s position as a western Swedish player on the capital market. The acquisition is expected to create positive synergies for both parties.

On 9 December 2022 Pegroco announced that a letter of intent has been entered into to acquire a number of operating companies from JOOL Capital Partner AB (“JOOL”). JOOL is mainly a leading provider of debt financing for small and medium sized enterprises. JOOL consists of about ten subsidiaries and the group is today owned to approximately 85% by JOOL Invest AB, with the main owners Göran Johansson and Tom Olander, as well as approximately 15% by partners in the business.

Pegroco has entered into a share sale and purchase agreement for the acquisition of 100% of the shares in the selected subsidiaries JOOL Securities AB, JOOL Corporate Finance AB, JOOL Securities Oy, JOOL Securities AG and Kommerserådet Förvaltning AB (the “JOOL Companies”).

The company was founded in 2010 and has today around 70 employees. The head office is based in Gothenburg and the company also has offices in Stockholm, Copenhagen, Helsinki, Paris and Zurich. The business had a total turnover of SEK 249 million in 2022 with an adjusted operating profit (EBIT) of SEK 83 million.

We are very happy about the opportunity to acquire JOOL's financial operations, which will form a new hub company for Pegroco. It is an entrepreneur-driven organisation with experienced management and qualified employees who have been very successful in recent years. The acquisition lays the foundation for a new chapter in Pegroco's development and creates synergies both financially, business-wise and organisationally, says Victor Örn, CEO of Pegroco Invest AB.

The deal adds value to our business and we look forward to work with Pegroco. Together, we have a broad base of established networks and solid experience of the capital market, both in the Nordics and internationally. Our joint focus on the SME market and future ambitions will create new opportunities to further accelerate our growth journey, says Tom Olander, CEO of JOOL Capital Partner AB.

The purchase price amounts to approximately SEK 720 million and consists of newly issued ordinary shares in Pegroco, whereby JOOL's current owners become long-term and significant owners in Pegroco. Payment for the shares shall take place through a directed offset issue, conditional on the general meeting of Pegroco approving the issue, whereby the relevant parties shall receive newly issued ordinary shares in Pegroco at a subscription price of SEK 17.40, according to the relative valuation that the parties have regulated in the share sale and purchase agreement, meaning that JOOL receives a total of 41,410,268 ordinary shares in Pegroco. The purchase price also includes an additional purchase price over three years based on the financial operating outcome of the JOOL Companies.

The JOOL Companies will be part of the Pegroco group, and the transaction is deemed to strengthen both the parent company's net worth as well as the group's turnover and profitability, in total and per share. The transaction requires, in addition to customary approvals, approval by the Swedish Competition Authority as well as a qualified majority decision (two-thirds) at a general meeting of Pegroco, to which notice was published on 6 March 2023 on Pegroco's website. Closing of the transaction will take place in connection with the above-mentioned approvals having been obtained and relevant decisions made.

The parties also evaluate that, at a later date, Pegroco acquires more companies within the JOOL Invest group or from its main owner, of which JOOL is currently included.

The parties' intention is to launch the acquired finance part under a new brand after the transaction. The parties are also reviewing the possibility of implementing a listing of Pegroco's ordinary shares in 2023.

About Pegroco
Pegroco (www.pegrocoinvest.com) is an investment company that invests in small and medium-sized unlisted companies, preferably in Sweden. Pegroco's preference share is listed on Nasdaq First North Premier Growth Market Stockholm.

For further information, please contact:
Tom Olander, CEO - JOOL Group
+46 (0) 706 83 75 31
to@joolgroup.com