Better Collective completes acquisition of RotoGrinders
Better Collective has decided to complete the acquisition of the remaining 40% share stake in the US based RotoGrinders Network at a total price of 33m EUR. Better Collective acquired its original 60% share stake in Rotogrinders Network in 2019.
The acquisition of the remaining 40% of the shares will be paid through a 22 mEUR cash consideration and the remaining part in shares or cash. Both components will be transferred no later than December 31, 2021.
This brings the expected transaction price for 100% of the shares in RotoGrinders Network to a total of 51 mEUR, equivalent to 7.5x the expected 2021 EBITDA. The purchase price of the remaining shares is dependent on financial performance in 2021 and the final price will be adjusted accordingly once financial results for 2021 have been announced. Better Collective and the selling shareholders had mutual options to buy and sell the shares in the period 2022-2024, however the decision has now been made to accelerate the purchase and complete it in one transaction.
Marc Pedersen, CEO of Better Collective US, says:“We are pleased to settle the full acquisition of the RotoGrinders Network earlier than originally planned. Since the initial acquisition, we have been impressed with the RotoGrinders team and we are excited to now welcome them to the broader Better Collective family and pursue all synergies to the fullest. Furthermore, we are pleased to keep the now previous shareholders in Rotogrinders engaged in Better Collective with the opportunity to benefit from their competences more widely in the organisation.”
Cal Spears, CEO of Rotogrinders, says: “Joining Better Collective a few years back helped us fully unlock the potential of the RotoGrinders network. We’re proud to announce that our significant growth has led to an accelerated acquisition and that our team of 50+ will be fully integrated into Better Collective US going forward. All seven of the original RotoGrinders network shareholders and co-founders are now assuming full time or advisory roles. Better Collective is perfectly positioned for US growth and we’re excited to help realise its potential.“