Panostaja sells Heatmasters to a group of Finnish investors

Panostaja Oyj Stock Exchange Bulletin, Insider Information June 8, 2021 14.15 pm

Panostaja sells Heatmasters to a group of Finnish investors

Panostaja has signed an agreement on selling the entire share capital of Heatmasters Oy and Heatmasters Poland Sp. z o.o. to Jali Priht and the group of investors he has put together. At the same time, Panostaja is divesting its heat treatment segment. Heatmasters Oy and Heatmasters Poland Sp. z o.o. are subsidiaries fully owned by Heatmasters Group, which is in Panostaja’s ownership.

The trade will involve Panostaja relinquishing its ownership in the company entirely. The debt-free total purchase price will be MEUR 1.4. Once the deal has been completed, Panostaja Group will record a capital loss of approximately MEUR 0.5, taking the tax effects into account.

Heatmasters will continue as an independent company, and the current CEO Ilkka Mujunen will remain on board as CEO and shareholder. Heatmasters has been owned by Panostaja since 2007.

“We have owned Heatmasters for a long time, and there have been a lot of different phases along our shared journey. In recent years, the development projects carried out with the company’s management have provided the company with more capabilities to strengthen itself as a market operator. This is the right time to relinquish our ownership and send the company off to a new phase of development with a new owner. The divestment is in keeping with our strategy and supports our objective of actively developing our own portfolio. I would like to thank the entire staff of Heatmasters for their great cooperation,” says Panostaja CEO Tapio Tommila.

Under Panostaja’s ownership, Heatmasters has grown into a provider of the best and most flexible services in the heat treatment sector. Jali Prihti and his group of investors will be excellent and determined owners who can help us continue development and internationalization efforts in years to come,” says Heatmasters CEO Ilkka Mujunen.

“This trade is a natural step for us in developing Finnish ownership. Heatmasters is a strong company with traditions that is known for heat treatment expertise, high-quality services and the ability to handle international projects. We are extremely excited for the opportunity to continue the development of Heatmasters together with its staff. The company’s committed staff have done excellent work, and we look forward to working more closely with them,” says Jali Prihti, who represents the group of investors.

Once the deal has been completed, Heatmasters will be fully removed from Panostaja Group’s profit/loss from continuing operations for the review period and reference period. Without Heatmasters, Panostaja Group’s comparable net sales and EBIT from continuing business operations for the 2020 financial period stood at MEUR 147.5 and MEUR 0.1, respectively.

In the financial periods November 1, 2019-October 31, 2020 and November 1, 2018-October 31, 2019, Heatmasters Oy’s net sales and EBIT were formed as follows (FAS):

(in thousands of euros)	November 1, 2019-October 31, 2020	November 1, 2018-October 31, 2019
Net sales	3,960	4,166
EBIT	261	156

Heatmasters Oy’s balances on October 31, 2020 and October 31, 2019 were as follows:

(in thousands of euros)	October 31, 2020	October 31, 2019
Permanent assets	608	710
Stocks	311	332
Receivables and Liquid assets	1,040	1,111
Total	1,959	2,153
Equity	964	783
Liabilities	995	1,370
Total	1,959	2,153

Panostaja Oyj

Tapio Tommila
CEO

More information:

Tapio Tommila, CEO, Panostaja Oyj, +358 (0)40 527 6311, tapio.tommila@panostaja.fi
Ilkka Mujunen, CEO, Heatmasters Oy, +358 (0)40 871 0987, ilkka.mujunen@heatmasters.fi

Panostaja is an investment company developing Finnish SMEs in the role of an active shareholder. The company aims to be the most sought-after partner for business owners selling their companies as well as for the best managers and investors. Together with its partners, Panostaja strives to increase shareholder value and create Finnish success stories. Panostaja has a majority holding in five investment targets. Panostaja’s shares (PNA1V) are quoted on the Nasdaq Helsinki Stock Exchange. In the 2020 financial year, the Group’s net sales totaled MEUR 159. www.panostaja.fi

Heatmasters offers heat treatment services for metals in Finland and internationally, as well as produces, develops and markets heat treatment technology. The company has facilities in Hollola, Turku and Varkaus. The company’s CEO is Ilkka Mujunen. In 2020, Heatmasters Group’s net sales stood at MEUR 4.0, and the company employed 35 people.https://heatmasters.net/