Thule finished off a strong fourth quarter, the first under new owner, Candover Partners (see BOSS_0444). Sales for the quarter increased 44% to SEK 615 million ($88.5 million) compared to SEK 427 million ($56.4 million) last year. Profitability improved at close to the same rate, with EBITDA jumping 34.7% to SEK 101 million ($14.5 million) compared to SEK 75 million. The fourth quarter accounted for roughly 22% of sales for the full year and 24% of the EBITDA.

Looking at the full year numbers, it seems Candover is already seeing some positive signs coming out of Thule. When Candover initially closed the deal in November, they paid €465 million ($595 million). This sum was reportedly about 1.7x trailing twelve-month sales and 16x EBITDA, whereas the industry average is 1.1x sales and 6-8x EBITDA.

In this most recent annual report, Thule posted a sales increase of 26.8% to SEK 2.79 billion ($379.8 million) compared to SEK 2.20 billion ($272.6 million) last year. EBITDA increased 34.8% to SEK 422 million ($57.6 million). While this still makes for some high multiples, it makes the deal look somewhat more reasonable. Although, with this much capital behind it, BOSS still has to wonder what surprises Thule may have in store for the industry down the road.

While much of the sales growth was acquisition-based, Thule still posted some very strong organic growth numbers, with currency and acquisition adjusted sales increasing by 10.1%.

The North American division reported a 23.7% increase in sales when measured in local currency, from $67 million in 2003 to $82.9 million in 2004. Thule management stated in their prepared remarks that the weaker general economic development during the summer led to lower private consumption and less car travel. The outdoor sector reportedly “developed well.” Even with the high North American sales numbers, management stated the aftermarket for the automotive industry “didn’t live up to the high expectations.”

With the integration of C&C Distributors, now called Thule Trailers Inc., completed, trailer assembly will now occur at the existing Thule premises outside Chicago.