DistIT & EFUEL

DISTIT STRENGTHENS ITS POSITION IN THE ELECTRIC CAR INDUSTRY – ACQUIRES EFUEL, ONE OF SWEDEN’S BIGGEST COMPANIES WITHIN ELECTRIC VEHICLE CHARGING

DistIT AB (publ) has entered into an agreement to acquire 100% of the shares in Electric Fuel Infrastructure Sweden 2 AB (“EFUEL”). Through the acquisition, DistIT further strengthens its exposure to electric vehicle charging, one of the most defined structural trends. The purchase price amounts to SEK 185 million, of which SEK 45 million is paid in cash and SEK 140 million through a directed new issue of shares in DistIT, provided that the extraordinary general meeting in the Company resolves on such new issue. Notice of the extraordinary general meeting is published today in a separate press release. Further, a conditional purchase price of SEK 140 million may be paid in cash.

The acquisition constitutes a significantly strengthened, additional exposure to one of the most defined structural trends and societal changes today. In the coming years, DistIT expects the market for electric vehicle charging infrastructure in the Nordics to grow by 70-100% per year.

THE GROWING ELECTRIC CAR MARKET

The market for EV’s are growing each day and will continue to grow substantially in the coming years. For the European market it is estimated that by 2030 42%* of cars will be Electric. Norway, Sweden and Finland are among the markets in Europe with the highest readiness score*.​

In Sweden there are approx 240 000 EV’s today and it is estimated that this will grow to count 2,5 million by 2030*. Furthermore, the current annual growth rate in Sweden is 84% by July 2021*. ​

DistIT expects that the market for electrically charged vehicle infrastructure e.g. wall boxes, and the performance of EFUEL will follow the market trend and grow accordingly in the coming years.


EFUEL’S STRONG POSITION IN THE SWEDISH MARKET

EFUEL (EFUEL.SE) is one of the largest companies in Sweden in electric vehicle charging with a market share of approximately 30% of the charging boxes delivered. For the past three years, EFUEL has been a strategic and preferred partner to Easee, a world-leading manufacturer of electric vehicle chargers. EFUEL is expected to have sales of SEK 120 million at an EBIT margin of at least 10% during 2021, and is forecasted to increase revenues by 70-100% in the coming years. The margin is expected to be gradually strengthened by increasing and recurring service sales and further development of own brands in accessories together with the DistIT Group.
 

SYNERGIES AND GROWTH OPPORTUNITIES

 

ACCESS TO MARKET AND CUSTOMERS
With EFUEL DistIT gains access to a company working directly with end customers and with 2.000 installers in Sweden. Through this collaboration DistIT will consolidate and further build its reach in Sweden. As a part of a long-term plan this will be of mutual benefit; both to the continued success of EFUEL and the joint efforts of the group to expand the network over the coming 5 years.

 

PRODUCT DEVELOPMENT
The own brands unit of DistIT is significant in size accounting for 650 msek in yearly revenue. With a joint collaboration it will be possible to further add to the assortment of EFUEL with an own brand assortment of productis and supplies to both installers and to be installed in homes.

 

STRUCTURAL (IT, INFRASTRUCTURE, LOGISTICS)

The structures within DistIT is core and these are build for scale, efficiency and speed. ​​

The direct benefits for EFUEL will relate to the warehouse and logistics units, the IT development and maintenance, customer care unit, and access to manpower and know-how e.g. marketing, finance or similar.

ACCELERATING GROWTH WITH STRUCTURE AND FINANCIAL SUPPORT
To become a DistIT company will be the welcome of both a growth structure, financial guidance and financial support. ​

For EFUEL this opportunity will mean an aggressive acceleration of business plans and expansion of the company. ​Furthermore, among the synergies will be opportunity to enter tender agreements as a DistIT listed company.


MARKETS EXPANSION IN NORDICS AND EUROPE

EFUEL will continue its success in the Swedish market and also expand into other Nordic markets and further into Europe.​