Mekonomen’s acquisition of FTZ and Inter-Team
Mekonomen completes the acquisition of FTZ and Inter-Team
Today Mekonomen has completed the acquisition of the automotive spare-parts distributors FTZ in Denmark and Inter-Team in Poland for a purchase price of EUR 395m (SEK 4,189m) on a cash and debt-free basis, in accordance with the previously announced agreement dated 6 July 2018. The acquired companies will be consolidated into Mekonomen starting from the beginning of September 2018.
The acquisition is financed through bank financing of in total EUR 405m from Nordea Bank AB, Skandinaviska Enskilda Banken AB and AB Svensk Exportkredit, whereof EUR 395m is attributable to the purchase price and EUR 10m to transaction costs. Part of the bank financing is intended to be repaid by a rights issue of approximately SEK 1,650m that was resolved by the board of directors of Mekonomen on 24 August 2018, subject to approval by an extraordinary general meeting on 26 September 2018. Final terms of the rights issue are expected to be resolved by the board of directors and announced no later than 24 September 2018.
Nordic Forum Holding, the holding company of FTZ and Inter-Team, is not part of the acquisition of FTZ and Inter-Team, but may be acquired in a separate, non-substantial transaction prior to year-end.
“We are delighted to now welcome FTZ and Inter-Team to the Group. The combination will further strengthen us in the Nordic region and provide an entry into the fast growing Polish market, bringing substantial value and opportunities for our customers, employees and shareholders”, says Pehr Oscarson, President and CEO Mekonomen.
Through the acquisitions, Mekonomen Group’s sales will almost be doubled. The acquisition is expected to generate annual synergies of SEK 100m, of which the majority consists of purchasing synergies, with full effect during 2021. The group also increases the number of stores from about 330 to 450, as well as number of workshops from 2,000 to over 3 300.
1 FTZ Autodele & Værktøj A/S (“FTZ”).
2 INTER-TEAM Sp.z.o.o. (”Inter-Team”).
3 In addition to the purchase price of EUR 395m, a corresponding to cash flows from the acquired entities
attributable to the seller (Locked box) from 30 Nov 2017 to completion of the acquisition, has been paid to the seller.
4 Purchase price of EUR 395m equals SEK 4,189m with an exchange rate (EUR/SEK) of 10.6048.
5 Any rights and shares that could be offered under the potential rights issue have not and will not be registered
under the US Securities Act of 1933, as amended, and may not be offered or sold in the United States absent
registration or/and applicable exemption from registration requirements.
6 Nordic Forum Holding A/S’ (”Nordic Forum Holding”) subsidiaries Hellanor A/S and UCANDO GmbH are not
included in the acquisition.
Link to press release: