Gothenburg, Sweden, 2012-10-03 10:45 CEST (GLOBE NEWSWIRE) --
Bilia has entered into an agreement to acquire the BMW dealer operations of the Auto7H group.
The BMW operations of the Auto7H group have a turnover of around SEK 360 million and operating profit totalled around SEK 4 million in 2011. During 2011, the companies supplied around 700 new BMWs and as many used cars. The companies have 42 employees and the operations are mainly based in Borås and Uddevalla with additional facilities on Orust and in expanding Strömstad.
The agreement is conditional on approvement by the Swedish Competition Authority. It is planned to take possession of the dealer operations during December with economic effect from 1 November 2012.
The companies’ capital employed plus agreed surplus value amount to around SEK 60 million. The purchase price of around SEK 30 million will be paid with Bilia shares to a value of SEK 10 million and the remainder in cash.
In Sweden, Bilia has been engaged as a BMW dealer in Gothenburg and Stockholm for a number of years. Synergies have been estimated at over SEK 3 million on an annual basis, with full effect from 2014.
The transaction is expected to have the following effects for the Bilia Group during 2013:
- Capital employed increases by around SEK 60 million and the net loan debt by aruond SEK 50 million.
- The number of outstanding shares increases by around 115,000.
According to Bilia’s CEO Per Avander:
”We are very pleased to be able to continue our expansion with BMW which has become an important business partner for Bilia in the 21st century. The acquisition means that Bilia will become more accessible by becoming established at places in western Sweden where we have not previously been represented and we look forward to being able to offer Bilia’s concept, competence and experience to more customers”.
Auto7H’s CEO Claes-Åke Gimmersta comments as follows:
”It feels good that the business and its fantastic staff are in secure hands and we wish Bilia every success. The mulitbrand dealer operations in Borås and Skene with the marques Subaru, Suzuki and Peugeot will remain in Auto7H. These operations will continue unchanged”.
Gothenburg, 3 October 2012
Bilia AB (publ)
For further information, please contact Per Avander, Managing Director and CEO, or
Gunnar Blomkvist, CFO, Bilia AB, Tel. +46 31 709 55 00.
