"Handicare has today signed an agreement to divest all the shares in its Danish subsidiary Handicare Auto A/S. The subsidiary, which mainly offers vehicle conversion for customers with special needs in Denmark has posted a turnover of EUR 19.8m in the last 12-month period (~7% of group sales) but has experienced profitability challenges in the same period. The total consideration of DKK 25m (EUR 3.3m) corresponds to an EV/adj. EBITA of 11.5x based on its full-year ’18 results, implying that the subsidiary delivered a softer EBITA margin of ~1-2% last year. Furthermore, the deal triggers a write-down of goodwill and other intangible assets and implies a capital loss of ~EUR 10m, which will burden Q4’19 results"
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