Relais Group’s Swedish group company Team Verkstad acquires Landströms Bygg & Plåt i Gällivare AB

Relais Group’s Swedish unit Team Verkstad agreed on 19 December 2025 to acquire 100% of Landströms Bygg & Plåt i Gällivare AB, with closing expected on 2 February 2026 and consolidation into the Scandinavia segment. LBP, a Gällivare-based truck and heavy-commercial-vehicle damage repair workshop with five employees, reported approximately SEK 19.1m in net sales and an adjusted operating profit of SEK 4.7m for the year ended August 2025; SEK 11.0m of the purchase price will be settled in newly issued Relais shares priced at the 20-day VWAP before closing. The acquisition strengthens Relais’ presence in the mining-heavy Gällivare area and complements its roll-up strategy—Relais reported EUR 322.6m in 2024 sales, has completed six acquisitions in 2025 and employs about 1,700 staff across eight countries.

Analysis

Market structure: The tuck‑in of Landströms (SEK 19.1m sales, ~SEK 11m paid in shares) slightly strengthens Relais Group’s local market share in Gällivare and reduces downtime risk for mining fleets—beneficiaries include Relais (RELAIS:HE) and nearby mining operators that rely on uptime. Impact on national pricing power is marginal—LBP is <1% of Relais’ 2024 revenue, so revenue/EBITDA accretion is positive but immaterial to sector pricing. The deal signals continued robust demand for heavy‑vehicle repair tied to mining capex; small positive spill to Nordic mining services (e.g., Boliden) and modest credit stability for Relais but negligible FX or commodity price effects.

Risk assessment: Primary tail risks are a regional mining slowdown (>>20% drop in truck utilization would impair margins), integration/cultural loss of local customers, and equity dilution from the SEK 11m share consideration set by 20‑day VWAP at closing (expected Feb 2, 2026). Immediate (days) risk centers on market reaction to the share issue; short term (weeks–months) on integration & quarterly guidance; long term (quarters–years) on execution of roll‑up strategy and leverage expansion. Hidden dependency: revenue concentration on a few mining clients—loss of one large account could reduce facility utilization by >30%.

Trade implications: Tactical trade is a small, event‑driven long in RELAIS post‑close to avoid VWAP dilution—target 2–3% portfolio with 12–18% upside over 6–12 months if M&A momentum continues (>=4 deals/year) and net debt/EBITDA stays <2.5x. If you prefer defined risk, use a 6–9 month call spread (buy near‑ATM, sell 25% OTM) sized to 1% portfolio risk; if entering pre‑close, pair with 60‑day 10% OTM puts to cap VWAP dilution risk. Rotate modestly into Nordic automotive aftermarket/industrial services (+200bps) and trim cyclical consumer discretionary (-200bps) given structural aftermarket demand.

Contrarian angles: The market may underprice the strategic value of contiguous geography in mining hubs—if Relais converts Gällivare into a regional hub, per‑site EBITDA could expand 200–400 bps over 12–24 months. Conversely, consensus may be overenthusiastic about roll‑ups: repeated small acquisitions can compress margins for 12–18 months. Historical parallels (truck/coach workshop consolidations) show real accretion only after 12–24 months of integration and cross‑sell; watch customer retention rates and local contract renewals as early leading indicators.

Key Decisions for Investors

• Establish a 2–3% long equity position in Relais Group (RELAIS:HE) after the share issuance/closing (expected post 2 Feb 2026). Rationale: continued roll‑up optionality and small accretion; target 12–18% upside in 6–12 months, set stop‑loss at -10% from entry.
• If constrained on capital, buy a 6–9 month RELAIS call spread (buy near‑ATM call, sell ~25% OTM call) sized to limit max loss to ~1% of portfolio. Objective: capture rerating from further tuck‑ins while capping downside from dilution or short‑term volatility.
• If initiating before closing, limit exposure to 1% of portfolio and purchase 60–90 day 10% OTM puts as protection against adverse VWAP‑based dilution and integration headlines. Exit or add only after verifying closing and first post‑acquisition trading update.
• Rotate +200bps into Nordic automotive aftermarket / industrial services exposure and reduce consumer discretionary by -200bps. Add incrementally if Relais reports net debt/EBITDA <2.5x and continues M&A cadence of >=4 deals/year; trim if either metric deteriorates.