BORG Automotive A/S entered into an agreement to acquire SBS Automotive A/S from Scandinavian Brake Systems A/S (CPSE:SBS) on May 5, 2021. As per the transaction, the sales price on a debt-free basis is expected to be around DKK 200-250 million. The sales price will be calculated no later than Q2 2023 and settled subsequently. After the transaction, SBS Automotive A/S will continue as an independent trading division of BORG Automotive A/S. As on December 31, 2020, SBS Automotive A/S generated revenues of approximately DKK 460 million and EBITDA  of DKK 20 million. As a part of transaction, Scandinavian Brake Systems A/S’s chairmanship, Peter Eriksen Jensen and John Dueholm, will become members of SBS Automotive A/S’s Board of Directors along with 3 representatives from Borg Automotive. Chief Executive Officer Mads Bonde will continue as Chief Executive Officer of SBS Automotive A/S under BORG Automotive A/S’s ownership. After the acquisition, Borg Automotive will have approx. 1,850 employees and production in Poland, England, and Spain as well as sales offices in Denmark, Belgium, Germany, Russia, and France. The transaction is subject to approval at an extraordinary general meeting of Scandinavian Brake Systems A/S, approval from relevant competition authorities and usual closing conditions, customary regulatory approval and approval by seller’s general assembly and is expected to be completed on 1 July 2021. Sales price of around DKK 200-250 million on a debt-free basis is assumed to provide Scandinavian Brake Systems A/S’s shareholders with proceeds of up to DKK 50 million, enabling a distribution of up to DKK 15.6 per share. The sales price is to cover SBS Group’s repayment of bank and leasing debt, transaction costs and expenses related to operations and closure. Carnegie Investment Bank, Filial Af Carnegie Investment Bank Ab (publ),Sverige acted as financial advisor, Kromann Reumert acted as legal advisor and Ernst & Young LLP acted as accountant to Scandinavian Brake Systems A/S. Søren Kamp Nørbæk of Bech-Bruun Advokatfirma acted as legal advisory to BORG Automotive A/S.