CDON Group to acquire Business Linc’s logistical operations in Falkenberg, Sweden
CDON Group AB, the leading e-commerce Group in the Nordic region, today announced that it has signed a deal to acquire Business Linc BL AB’s operations in Falkenberg, Sweden. The acquisition of the logistical operations is an important step toward strengthening the Group’s value chain and delivering a high level of customer satisfaction.
Business Linc is a third-party logistics company with focus on the e-commerce market. The company operates approximately 50,000 sq. m. of warehousing space in Falkenberg. The acquisition is structured as an assets deal and all approximately 340 personnel will be offered employment in the CDON Group. The acquisition is expected to be completed on 1 October 2012.
The acquisition of the operations includes the majority of its assets as well as the liabilities attributable to these assets that arise after the transfer. The purchase price of SEK 10 million is to be paid in monthly instalments of SEK 1 million each. An additional purchase price not to exceed SEK 5 million is contingent on certain conditions, including the transfer to CDON Group of existing rental contracts with unchanged terms for the operations.
CDON Group already operates logistics for the stores Tretti, Gymgrossisten, Bodystore and Rum21. The acquisition further strengthens the Group’s value chain; today four e-commerce stores within CDON Group use Business Linc as their logistics partner.
Paul Fischbein, President and CEO of CDON Group, comments: “Logistics is such a key part of our value chain and the customer’s shopping experience that we want to run it in-house when strategically possible."
"The acquisition of Business Linc’s logistical operations means that we will now manage the warehousing for four more of our e-commerce stores: Nelly, Heppo, Members and Lekmer. This acquisition ensures that we can facilitate continued growth in these stores.”
“Control over warehousing also allows us to make investments that benefit our e-commerce stores. We plan to continually invest in these operations with the aim of increasing customer satisfaction and achieving strengthened future profitability.”
For further information please visit cdongroup.com or contact:
Paul Fischbein, President and Chief Executive Officer
Tel: +46 (0) 10 703 20 00
Fredrik Bengtsson, Head of Communications
Tel: +46 (0) 700 80 75 04
Email: firstname.lastname@example.org, email@example.com
The information in this announcement is that which CDON Group AB is required to disclose under the Securities Markets Act. This information was released for publication at 07:00 CET on 28 September 2012.
About CDON Group
CDON Group is the leading e‐commerce group in the Nordic region. Established in 1999, the Group has continuously expanded its product portfolio and is now a leading e‐commerce player in the Entertainment (CDON.COM, BookPlus.fi, Lekmer.com), Fashion (Nelly.com, Heppo.com, Members.com), Sport & Health (Gymgrossisten.com, Bodystore.com) and Home & Garden (Tretti.com and Rum21.se) segments. The group reported revenues of SEK 3.4 billion for the full year 2011. CDON Group is listed on the NASDAQ OMX Stockholm Mid‐cap list under short name CDON.