Oriola-KD Corporation Stock Exchange Release 8 April 2013 at 10.50 a.m.
Oriola-KD amends the details of the acquisition section in the stock exchange
release published today at 8.30 a.m.
Oriola-KD Holding Sverige AB, an Oriola-KD company, has signed an agreement to
acquire Sweden's fifth largest pharmacy chain Medstop Group Holding AB
("Medstop") from Segulah Management IV Limited. The total value of the
acquisition is estimated to be SEK 1460 (EUR 176) million, comprising of three
separate items: a SEK 680 (EUR 82) million cash payment, net debt of the
acquired company, and a conditional earn-out payment payable on the basis of the
consolidated 2015 EBITDA of Oriola-KD's combined Swedish Retail business.
Oriola-KD will finance the acquisition in full with a bank loan. The
transaction is expected to be completed in the second quarter of 2013 subject to
the Swedish Competition Authority (Konkurrensverket) and Medical Products Agency
(Läkemedelsverket) approvals.
Details of the acquisition
The Medstop pharmacy chain has a total of 65 pharmacies located in shopping
centres and city centre locations in the Stockholm, Gothenburg and Malmö areas.
In 2012, the net sales of Medstop were EUR 273 (299) million and EBITDA of the
chain was EUR 11.6 (11.5) million, excluding non-recurring items, corresponding
to about 4.2 (3.8) per cent of net sales. The net debt of the pharmacy chain at
year end 2012 was EUR 75 (80) million and total assets at the end of 2012 were
EUR 215 (223) million. Medstop's market share of the Swedish pharmacy market was
approximately 7.5 per cent at the end of 2012. The pharmacy chain employed 578
people at the end of 2012.
The acquisition supports Oriola-KD's strategic growth in the Swedish market
"The acquisition is an important part of Oriola-KD's strategy to take an active
role in the transformation of the Swedish pharmacy market and it supports the
company's goal to become one of the main operators in Swedish pharmaceutical
retail and wholesale market." Eero Hautaniemi, President and CEO, Oriola-KD
Corporation.
Following the acquisition, Oriola-KD will have some 290 pharmacies in Sweden and
its market share in the Swedish retail trade will increase from the current 14
per cent to approximately 21 per cent. The acquisition is expected to create
synergies in purchasing, warehousing and pharmacy distribution.
Invitation to a conference call
Oriola-KD Corporation will organise a conference call on the acquisition of the
pharmacy chain starting at 11.00 a.m. on 8 April 2013. The conference call
number is +44 203 481 0954 and the confirmation number is: 8910 379#. The
conference will be held in English.
Oriola-KD Corporation
Eero Hautaniemi
President and CEO
Tuomas Itkonen
CFO
Further information:
Eero Hautaniemi
President and CEO
Tel. +358 (0)10 429 2109
e-mail: eero.hautaniemi@oriola-kd.com
Tuomas Itkonen
CFO
Tel. +358 (0)46 876 5207
e-mail: tuomas.itkonen@oriola-kd.com
Joni Ihantola
VP Treasury and IR
Tel. +358 (0)10 429 4386
e-mail: joni.ihantola@oriola-kd.com
Distribution:
NASDAQ OMX Helsinki Ltd.
Key media
Released by:
Oriola-KD Corporation
Corporate Communications
Orionintie 5
FI-02200 Espoo
www.oriola-kd.com
[HUG#1691015]