Strategic Acquisition: A Game Changer for GAHL

FREMONT, CA: Global Auto Holdings (TopCo) Limited ("GAHL") is pleased to announce that it has signed a definitive agreement to acquire K.W. Bruun Import A/S and K.W. Bruun NxT A/S (collectively, "KWB"), one of the Nordics' largest automotive distributors, with operations in Denmark and Sweden. The deal is expected to be finalized before the end of calendar year 2024. KWB has a 100-year history in the automotive industry and currently imports and distributes new vehicles and OEM-branded spare parts for Peugeot, Citroen, DS, Opel, and Mitsubishi in Denmark and Sweden, as well as additional brands, including certain Chinese OEMs, in Denmark. KWB operates under long-term contracts with its OEM partners and distributes through a captive, largely third-party-owned dealership network that includes over 210 dealerships in Denmark and Sweden. The company has a high margin, is resilient, and produces a lot of free cash flow throughout the business cycle. It also has a substantial market share 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."