Midsona acquires Internatural, including the Kung Markatta (SE) and Helios (NO) brands, creating a Nordic leader within organic food

· The leading organic food brands Kung Markatta and Helios are an ideal
complement to Midsona’s organic Urtekram brand. Bringing these brands together
under one umbrella enhances Midsona’s ability to lead product innovation in the
category for the benefit of its customers.
  · The market for organic and plant-based food products has demonstrated strong
growth, a trend that is expected to continue. This acquisition strengthens
Midsonas presence in these attractive growth segments.
  · The total purchase price of SEK 810 million, on a debt-free/cash-free basis,
will be paid in cash upon closing.
  · Midsona has financed the transaction with new acquisition financing and
existing credit facilities and announces its plans to complete a rights issue
later this year, possibly combined with other financing alternatives. Midsona’s
largest shareholder, Stena Adactum AB, has agreed to guarantee the new share
issue.

Malmö, Sweden – July 5, 2016 – Midsona AB (publ) ("Midsona") and Priveq
Investment are pleased to announce that they have signed an agreement whereby
Midsona will acquire 100% of the outstanding shares of Internatural AB
("Internatural" or the “Company”) from Priveq Investment Fund IV and minority
shareholders.
Internatural is the holding entity of the operating companies Kung Markatta AB
and Alma Norge AS. The Company is a leading independent distributor and marketer
of organic, plant-based and other lifestyle food products in Sweden and Norway.
Internatural has a strong portfolio of well recognized proprietary brands
complemented by local and international third party brands.
The own brands, Kung Markatta in Sweden and Helios in Norway, are focused on the
organic food segment where they have both been pioneers in their respective
markets. The portfolio of third party brands includes market leaders such as
Alpro, Yogi Tea and Green & Black’s.  In 2015 Internatural had sales of SEK 637
million, with 64% coming from Sweden and 36% from Norway. From 2013 to 2015
total sales grew at a compound annual growth rate of 20% and 2016 shows
continued strong growth.
“This transaction is Midsona’s largest to date and further accelerates our
ongoing journey into becoming the leader in health and well-being in the Nordic
region. Following our acquisition of Urtekram one year ago, Internatural
represents a perfect fit for Midsona and an exciting next step in our
development. By combining these complementary regional market leaders, we see
exciting opportunities to further the development of our product portfolio, our
brands and our organization for the benefit of our customers, suppliers and
consumers. The addition of Kung Markatta and Helios, together with Urtekram,
provides Midsona with the market leading position within packaged organic food
products in each of the countries that we are currently active in (Sweden,
Denmark, Norway and Finland). We have been impressed by the Internatural team
and are delighted to be welcoming them to Midsona”, says Peter Åsberg, CEO of
Midsona.
"I see Midsona as the ideal partner for Internatural in its continued growth and
development. We have known Midsona for some time and have enjoyed a successful
partnership in the Norwegian market. We are excited to be joining forces and
look forward to a prosperous future together“, says Anders Dahlin, CEO of
Internatural and Kung Markatta AB.
Financial Effects on Midsona
The acquisition is expected to close today and will be incorporated into
Midsona’s financial results from the beginning of Q3. For the financial year
2015, Internatural achieved sales of SEK 637 million and EBITDA of SEK 65
million. For the current financial year, Midsona expects Internatural to achieve
sales of approximately SEK 735 million and EBITDA of approximately SEK 85
million. Not taking into account any transaction-related costs, financial or
synergy effects, the purchase price would represent a current year EV multiple
of approximately 9.5x EBITDA. Internatural’s strong profitability is anticipated
to have an enhancing impact on Midsona’s margins, supporting Midsona’s
development towards its EBIT target of >10%. Synergies are anticipated to be
realized in areas such as procurement, logistics and production. During the
coming years these synergies are expected to have an annual impact on EBITDA of
approximately SEK 35 million, of which SEK 25 million are expected to be
realized before the end of 2017.
Financing and Rights Issue
Midsona has financed the transaction with a combination of a new acquisition
financing facility from Danske Bank as well as existing credit facilities.
Approximately half of the new acquisition facility is in the form of a bridge
loan and Midsona plans to complete a share rights issue worth up to SEK 400
million later this year, possibly combined with other financing alternatives
such as a bond issue. The proceeds from the rights issue will enable Midsona to
maintain its financial ratios as well as to continue to pursue its growth
objectives. Midsona’s largest shareholder, Stena Adactum AB, has agreed to
subscribe to its pro rata share of the rights issue as well as provide a
guarantee for the remaining portion of the offering. Stena Adactum has received
an exemption from the Swedish Securities Council from a potential mandatory bid
which otherwise could arise in connection with Stena Adactum’s subscription of
shares in the rights issue. Further information to the stock market and
shareholders of Midsona will be provided in due course as soon as appropriate.
Advisors
Strata Advisory AB is acting as exclusive financial advisor to Midsona.
Fredersen Advokatbyrå AB and Advokatfirmaet Haavind AS are legal advisers and
Deloitte financial due diligence advisor to Midsona.
About Midsona
Midsona holds a strong position in the Nordic market with strong own brands
within health foods, personal care and hygiene. Midsona also sells a number of
established international brands under license. Midsona’s priority trademarks
are: DALBLADS, FRIGGS, MIWANA, MYGGA, NATURDIET, SUPERNATURE, URTEKRAM and TRI
TOLONEN. Midsona had annual sales of about SEK 1,292 million and EBITDA of SEK
95 million, excluding one-time items, on a rolling twelve months basis as of
March 31, 2016. The Midsona share (MSON) is listed on NASDAQ OMX Stockholm,
Small Cap. More information is available at www.midsona.com
About Internatural
Through its subsidiaries, Kung Markatta AB and Alma Norge AS, Internatural
offers one of the widest ranges of organic, plant based and lifestyle food
products in Sweden and Norway. Under its own, award winning premium organic
foods brands, Kung Markatta (Sweden) and Helios (Norway), the company offers
approximately 200 products in each of its core markets. The Company also
successfully distributes several other brands, for example Alpro, Yogi Tea,
Green & Black’s, Clipper and Getraw. The Company has over 70 employees located
at its facilities in Örebro and Malmö in Sweden and Årnes in Norway. Sales in
2015 were SEK 637 million. More information is available at
www.kungmarkattaab.se and www.alma.no
For further information, please contact:
Midsona:

Peter Åsberg                           Lennart Svensson
CEO                                    CFO and Head of Investor Relations
Tel: +46 730 26 16 32                  Tel: +46 767 74 33 04

The information provided in this press release is such that Midsona is required
to disclose pursuant to the Market Abuse Regulation. This information was made
public by Lennart Svensson at 08:30 CET on July 5, 2016.