A potential acquisition is in the works. Again, they are announcing negotiations that are already at an advanced stage, but I expect this will likely cross the finish line. The planned acquisition falls under the Oceans segment.
Since 2020, the target company has reported an annual organic growth rate of 48 per cent and is expected to generate around NOK 100 million in revenues in 2026 with an EBITDA margin* in the range of 25-30 per cent, excluding any synergies by combining forces with NORBIT.
A preliminary transaction price has been agreed, valuing the target company on a cash and debt-free basis of NOK 330 million assuming normalized working capital. If completed, the acquisition is expected to be financed with new credit lines.
The completion of the transaction is subject to due diligence and the parties entering into a binding agreement for the acquisition. Signing and closing of the transaction are targeted to end of June.
The target company’s revenue this year is approx. 100 MNOK with a 25-30% EBITDA margin. With an EV of 330 MNOK, the EV/EBITDA would be 11-13x. So, it’s not screamingly cheap, but not expensive either. Of course, Norbit’s own multiple is significantly higher. Additionally, the target company operates in the defense market, so structural tailwinds can be expected from the market. Strategic fit with Oceans has likely been well thought out.
In 2025, Norbit itself had a turnover of approx. 2,500 MNOK with a 28% EBITDA margin. Oceans accounted for approx. 880 MNOK, so that 100 MNOK addition is a quite substantial addition to the whole.
All-in-all, a very Norbit-like acquisition: staying in the niche where they are strong. The target company has grown rapidly with good margins; let’s see if they can squeeze more out of it through synergies (hehe).
