Mekonomen acquires Norwegian spare parts chain Sørensen og Balchen AS

Mekonomen acquires Norwegian spare parts chain Sørensen og Balchen AS

Mekonomen has entered an agreement to acquire Sørensen og Balchen from
Otto Olsen Invest. Sørensen og Balchen operates the BilXtra spare parts
chain in Norway, which has 32 own stores, 41 affiliated stores and
slightly more than 200 cooperating workshops.

Sørensen og Balchen is a well-know family company and has a strong
position in the Norwegian market.  Sørensen og Balchen's forecast for
sales in 2011 amounts to approximately NOK 660 M. The annual cost,
logistics and purchasing synergies are estimated at SEK 40 M as of 2012.

“This transaction gives us a stronger position in the Norwegian market,
which is still dominated by branded dealerships. Mekonomen and BilXtra
are both successful concepts with the same approach to service for
customers and there is extensive potential for both chains to grow
further. Further, Sørensen og Balchen will be operated as an independent
group within Mekonomen. This acquisition will provide positive effects
for our customers as well as for Sørensen og Balchen and Mekonomen,”
says Håkan Lundstedt, President and CEO of Mekonomen.

“The transaction is a step in Mekonomen's growth strategy. It
strengthens the position and customer offering in the Norwegian market
and makes Mekonomen a very attractive business partner,” says Fredrik
Persson, Chairman of Mekonomen.

“Sørensen og Balchen will gain a competent owner in Mekonomen and the
transaction will benefit BilXtra's existing and new customers. This will
also strengthen the company's possibilities for further expansion and
development,” comments Jon Melhus, Chairman of Otto Olsen Invest.

The purchase will be made using 1,945,783 newly issued shares through a
non-cash issue and NOK 273 M in cash. The dilution effect for existing
shareholders amounts to approximately 6 per cent and the equity ratio in
Mekonomen following the acquisition is expected to amount to 53 per
cent. The transaction is expected to have a positive effect on earnings
per share already in 2011.

“From Sørensen og Balchen's perspective, we can see that the future will
involve greater consolidation and that competitors and suppliers will
belong to larger groups. To ensure sufficient competitiveness and the
ability to offer our customers the best prices, concepts and systems, we
are pleased that it is Mekonomen that is acquiring Sørensen og Balchen.
The fact that Sørensen og Balchen will continue as an independent
company, but can at the same time share the benefits that Mekonomen has,
will strengthen us in the short and long term,” says Morten Birkeland,
CEO of Sørensen og Balchen.

The acquisition is conditional upon Mekonomen's General Meeting
approving a new issue of shares as the purchase consideration (non-cash
issue). Special notification of an Extraordinary General Meeting will be
issued shortly and the meeting is scheduled to be held on 25 February
2011. Implementation of the acquisition also requires the approval of
the Norwegian Competition Authority.

Mekonomen's principal owner, Axel Johnson AB, and Mekonomen's management
have agreed to vote in favour of the proposed non-cash issue. 

For further information:

Håkan Lundstedt, President and CEO Mekonomen AB, tel +46 (0)72-749 16 27

Gunilla Spongh, CFO Mekonomen AB, tel +46 (0)72-247 10 84

Mekonomen AB (publ), Corp. Reg. No. 556392-1971 Box 6077, SE-141 06
Kungens Kurva.
Telephone: +46 (0)8-464 00 00, Fax: +46 (0)8-464 00 69

Mekonomen makes CarLife easier, through a broad and highly accessible
offering of low-cost and innovative solutions and products for consumers
and companies. We are Scandinavia's leading automotive spare-parts chain
with proprietary wholesale operations, more than 200 stores and more
than 1,000 workshops, all operating under the Mekonomen brand.