Today, an agreement has been signed where Tura Group AB (publ) commits to acquiring 100% of the shares in the company Happy Plugs AB. The takeover date is set for January 2, 2023.
It is a well-known brand that is now being acquired by Tura Group AB. Happy Plugs has successfully provided the market with products where the combination of fashion and technology has been at the forefront for many years. In recent years, the business has mainly focused on headphones and wireless products. These products fit well into Tura's range.
"Since 2011, Happy Plugs has established itself as a leading lifestyle company in the headphone market. The company's products are sold in 70 different markets and have collaborated with strong brands such as Smiley, Saint Laurent, H&M, Urban Outfitters, etc. After collaborating with Tura for a while, we are pleased that Tura has chosen to acquire Happy Plugs to further develop the brand," says Andreas Ossmark, Chairman of the Board of Happy Plugs and partner at Scope Capital.
"We have been following Happy Plugs' progress in the headphone sector for a long time, and the journey this company has taken is highly impressive. The brand is widely recognized, and this is an important factor behind the fact that we are now acquiring the company as a whole. For Tura, this also means that we will do business outside the Nordic region. Something that will be able to have a ripple effect on our other own brands," says Stefan Eriksson, CEO of Tura Scandinavia.
Happy Plugs is expected to generate sales of just under SEK 60 million this year and has subsidiaries in the USA and Hong Kong. The group has around 20 employees, some of whom are consultants, and had a turnover of SEK 155 million in 2019, but has been severely affected by the pandemic in 2020 and 2021 and has since operated at a loss. The equity as of December 31, 2021, amounted to SEK 1.4 million. By becoming part of Tura, significant cost savings can be achieved in administration, logistics, sales, and marketing.
In the future, we believe that the headphone market will continue to be attractive, which means that customers will continue to demand affordable and well-designed headphones.
The deal is expected to add a turnover of approximately SEK 60 million to Tura Scandinavia AB next year and is expected to achieve profitability no later than 2024 after structural work. The purchase price on a debt-free basis amounts to less than 5% of the group's total assets as of September 30, 2022, and will be financed through borrowing and internal funds. The takeover will take place on January 2, 2023, and the entire purchase price will be paid in cash upon completion.
Contact regarding this deal is Stefan Eriksson.
Email:stefan.eriksson@turascandinavia.com
Mobile:+46 73-351 52 71
Kind regards
Tura Scandinavia AB
Stefan Eriksson
CEO