Mekonomen to acquire MECA

Mekonomen to acquire MECA

Mekonomen has signed an agreement to acquire the automotive spare-parts
chain Meca Scandinavia AB from the Sixth AP Fund. Meca has 66
proprietary stores, 24 franchise stores and 482 partner workshops in
Sweden and Norway.

Meca is a well known automotive spare-parts chain, with strong positions
in Sweden and Norway. Meca forecasts sales for 2011 to amount to
approximately SEK 1,500 M and operating profit to approximately SEK 180
M. The annual synergies resulting directly from the acquisition are
estimated to a total of SEK 80 M from 2013. However, Mekonomen and Meca
will continue to operate as separate companies with existing brands.

“Meca has displayed a strong and convincing trend in recent years. The
transaction will make us stronger together, although compared with
global multinational automotive players we are still small. Accordingly,
we have the potential to expand further in the Nordic region. The
transaction will be beneficial to both Mekonomen's and Meca's customers,
employees and owners. In particular, the deal will help us maintain even
more attractive prices for consumers in the future,” says Håkan
Lundstedt, President and CEO of Mekonomen.

“The transaction will provide Meca with a competent and successful
industrial owner. This will allow Meca to continue the strong
development. Since we will be a major shareholder of Mekonomen we will
have the opportunity to take part of the future development,” says
Marianne Dicander Alexandersson, President of the Sixth AP Fund.

Payment will occur through the issue of 3,086,882 new shares via a
non-cash issue, as well as a cash payment of SEK 1,246 M. The dilution
effect for existing shareholders will amount to approximately 8.6 per
cent and the equity/assets ratio in Mekonomen after the acquisition is
estimated at 47 per cent. The transaction is anticipated to generate a
positive impact on earnings per share already in 2012.

“With Mekonomen as owners, we can more cost efficiently develop our
offer for the workshop customer and we will continue the successful
journey and make Meca even stronger in the future. Meca will operate as
an independent group even after the acquisition and with the same
management team as before,” says Torbjörn Olsson, President and CEO of
Meca Scandinavia AB.

The acquisition is conditional upon approval from the Norwegian and
Swedish Competition Authorities. Mekonomen judges that these permits
will be available on acceptable terms and within reasonable time.

Due to Mekonomen's acquisition of Meca Scandinavia AB, a telephone
conference will be held in Swedish, on 12 October 2011, at 11:00
a.m.CET, and in English at 12:00 a.m CET. For more information, please
refer to a separate press release.
 
 

For further information, please contact:

Håkan Lundstedt, President and CEO of Mekonomen AB
Tel: +46 (0)8-464 00 00

Gunilla Spongh, CFO of Mekonomen AB
Tel: +46 (0)8-464 00 00

Mekonomen AB (publ), Corp. Reg. No. 556392-1971
Box 6077, SE-141 06 Kungens Kurva, Sweden
Tel: +46 (0)8-464 00 00, Fax: +46 (0)8-464 00 66

The information in this press release is such that Mekonomen is
obligated to publish in accordance with the Securities Market Act.
The information was submitted for publication on 12 October 2011.

Mekonomen makes CarLife easier through a wide and easily accessible
range of inexpensive and innovative solutions and products for consumers
and companies. We are the leading spare-parts chain in the Nordic region
with proprietary wholesale operations, more than 300 stores and more
than 1,600 workshops operating under the Mekonomen brands.