In this pitch deck, analysts Calle Alm-Ramberg, Vilmer Karlsson Ahlborg, and Mandy Sy
present a comprehensive investment assessment of ME Group International (ME Group), a
UK based provider of automated self-service equipment. Me Group operates in 18 countries
across Europe and APAC through two highly cash-generative business segments. Using a
multifaceted valuation approach, incorporating a discounted cash flow model, trading
comparables, precedent transactions, and an LBO, the analysts estimate ME Group’s
enterprise value in the range of GBP 501–1,549m.
Key Takeaways
● ME Group is pivoting towards its higher-margin Wash.ME segment, which offers a
rapid unit payback period of 19-28 months. The focus is enhanced by the optional
divestment of the company’s APAC operations, allowing for a concentrated effort on
the more profitable European market.
● The company is positioned to consolidate the fragmented European self-service
laundry market, where it currently holds a 9% market share. Bolt-on acquisitions are
supported by strong organic cash generation and a potential GBP 42 million cash
infusion following APAC divestment. ME Group has the financial capacity to pursue
acquisitions that could increase EBITDA by 24%, pro forma.
● ME Group is significantly undervalued. Despite the strong cash generation of 86%
LTM, vast ARR, and an EBITDA margin of 37%, the company is trading at a modest
4.8x LTM EBITDA.