AB Bilia has signed a declaration of intent to acquire all the shares in Scaniadam A/S in Copenhagen.
Scaniadam runs seven car dealerships in the Copenhagen area and is an authorised dealer for Ford and Mazda. The company's annual turnover totals SEK 1,030 million and sales last year totalled 4,000 new cars and 1,200 used cars. Scaniadam has a total of 278 employees.
The final agreement is expected to be completed some time in May. Among other things, the agreement is dependent on the implementation of a due diligence analysis. A further agreement involving an option to acquire Scaniadam's real estate portfolio at its book value five years from now will also be signed.
Bilia is involved in the sale and service of Volvo and Renault at six dealerships in Copenhagen. Turnover totals SEK 720 million and the sales volume is 1,700 new cars and 1,500 used cars. The work force totals 207 employees.
Commenting on the agreement, Jan Pettersson, Bilia's managing director, says "The acquisition of Scaniadam will give us the opportunity to co-ordinate its operations with our current Volvo and Renault operations in Copenhagen, making us the largest car dealer in Denmark. The cost of development, logistics and joint functions will be covered by larger volumes, thereby benefiting both Scaniadam's and Bilia's customers."
Göteborg, 11 April 2005
Bilia AB (publ)
For further information, please do not hesitate to contact Bilia's managing director and CEO, Jan Pettersson, phone +46 31 709 55 00.
