Ferronordic buying Rudd for the price they did seems like a pretty good deal. But when something like that happens, I always wonder: why are they "allowed" to buy it at the price they did?
I understand there might have been limited competition & FNM has Volvo's blessing... but do you have any info on why Rudd was for sale?
Always fun to read your posts! Thanks for sharing!
About Ferronordic, I really like the company and have followed for some years now. It was exciting to see them sell their operations in Russia and now rebuilding in the US. I do see them quite levered now? Like, their net-debt after the acquisition will be 960M (from conference call 23q3), so an EV of around 2000M. Then if we assume an operating profit (after group costs) of 150M, then you get a 13x EV/EBIT? Not saying it is expensive, but not sure if cheap. Maybe you have a different assessment? Also, we know they have built up quite some inventory, maybe you are taking it into account?
Have to say though, that I am willing to pay a premium for this management.
Whats your thoughts that the CEO of Gotlandsbolaget seems to suggest in his comments about the large amount of cash on the balance sheet that the majority will be invested in new ships as the last batch cost 3 billion and the more environment friendly ones will be even more expensive :/
Great read as always! Thank you!
Ferronordic buying Rudd for the price they did seems like a pretty good deal. But when something like that happens, I always wonder: why are they "allowed" to buy it at the price they did?
I understand there might have been limited competition & FNM has Volvo's blessing... but do you have any info on why Rudd was for sale?
Always fun to read your posts! Thanks for sharing!
About Ferronordic, I really like the company and have followed for some years now. It was exciting to see them sell their operations in Russia and now rebuilding in the US. I do see them quite levered now? Like, their net-debt after the acquisition will be 960M (from conference call 23q3), so an EV of around 2000M. Then if we assume an operating profit (after group costs) of 150M, then you get a 13x EV/EBIT? Not saying it is expensive, but not sure if cheap. Maybe you have a different assessment? Also, we know they have built up quite some inventory, maybe you are taking it into account?
Have to say though, that I am willing to pay a premium for this management.
Whats your thoughts that the CEO of Gotlandsbolaget seems to suggest in his comments about the large amount of cash on the balance sheet that the majority will be invested in new ships as the last batch cost 3 billion and the more environment friendly ones will be even more expensive :/