ELFA DISTRELEC acquired by BOREO
Context
Boreo Plc has agreed to acquire the sales activities of Elfa Distrelec in Finland, Latvia, Estonia and Lithuania from RS Group plc. The transaction consolidates the existing RS operations that Boreo already manages under its Yleiselektroniikka and YE International subsidiaries with the newly purchased businesses. Completion is anticipated in the third quarter of 2025, subject to regulatory approvals in Finland and Estonia and customary closing conditions. The acquisition aligns with Boreo’s strategy to broaden its industrial and MRO product offering and to deepen its digital distribution capabilities in the Nordic and Baltic regions. By integrating the Elfa Distrelec portfolio, Boreo gains access to a wider range of manufacturers and can cross‑sell to its current customer base. The deal also strengthens the long‑standing partnership between the two groups that has existed since the early 1990s, providing a unified platform for joint growth initiatives. Post‑closing, the combined entity will operate as a high‑service, digital‑led distributor delivering an expanded catalogue, improved order‑to‑delivery performance, and additional value‑add services such as engineering support and kitting. Operational synergies are expected from consolidated warehousing, unified procurement processes, and shared sales resources, which should enhance margin stability and cash‑flow generation. The expanded footprint positions the business to capture incremental demand from industrial customers seeking reliable, fast‑turnaround component supply across the region.
ELFA DISTRELEC, which reported an EBITDA margin of LOGIN in 2024, is valued in this transaction at an EV/EBITDA multiple of LOGIN, a level to compare with the average currently observed in the Business Services sector (11.1x).
Note that this data is based on contribution from our growing community, composed of M&A and Private Equity professionals, and has been verified by our team to ensure its accuracy.
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Target
Boreo's newly formed entity will operate the former Elfa Distrelec sales activities in Finland, Latvia, Estonia and Lithuania. The business distributes industrial and maintenance‑repair‑operations (MRO) products, including electrical components, automation parts, and safety equipment, to manufacturing plants, utilities, and service contractors. Customers are served through a digital platform that integrates online ordering, inventory visibility, and logistics tracking. The product portfolio is sourced from multiple global manufacturers and stocked in regional warehouses to enable next‑day delivery. The company employs a ten‑person team that manages sales, technical support, and after‑sales service across the four markets. Revenue is generated primarily from product sales, with ancillary income from value‑added services such as kitting, custom engineering, and technical consultancy. The business model relies on high inventory turnover, low gross margins, and a focus on reducing order‑to‑delivery cycles. Operations are coordinated from a central hub in Finland, with satellite logistics nodes in the Baltic states. The organization follows standardized procurement contracts and leverages electronic data interchange with suppliers. Market coverage includes the Nordic and Baltic industrial sectors, where demand for reliable component supply and rapid fulfillment remains consistent. The relationship originated in the early 1990s when Boreo began representing RS Group’s product range, establishing a long‑term channel for catalog distribution in the region. The entity will be reported under Boreo’s Electronics Business Area.
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Historical Financials (EUR)
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REFERENCES
Valuation range: EV 0M - 15M EUR
Revenue range: 5M - 25M EUR
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Authors: verified mynth contributor (mynth data is contributed by M&A / PE professionals and systematically cross-verified with private deal documents and official press releases).
Press release: view release
Target: elfa distrelec
Acquirer: boreo