Volati completes acquisition of Akademibokhandeln and Bokus

Volati AB (publ) (”Volati”) has today completed the acquisition of Akademibokhandeln Holding AB (publ) (”Akademibokhandeln”) which was announced on May 17, 2017. 

"We are pleased that Akademibokhandeln and Bokus now become a part of the Volati Group, which thus reaches an annual net turnover of approximately SEK 5 billion, based on 2016 figures. Akademibokhandeln is a well-managed and profitable group with strong cash flows that, with its presence in all channels, offer books no matter how we want to buy and enjoy them. We are looking forward to continuing with the development of Akademibokhandeln, together with its management.", says Mårten Andersson, CEO of Volati.

Volatis shareholding after the acquisition amounts to the equivalent of 95.04 percent of the shares in Akademibokhandeln and the company's management will remain with an ownership corresponding to 4.96 percent of the shares of Akademibokhandeln. The acquisition has been carried out at an estimated operating value ("EV") of approximately SEK 760 million at the time of consolidation and has been funded using available cash and existing credit facilities of Volati. The purchase price for 100 percent of the shares amounted to SEK 263 million, and the entire purchase price has been paid today. The acquisition takes place at an EV/EBITDA multiple of 6.1 times based on 2016 figures.

On completion of the acquisition of Akademibokhandeln, Volati’s leverage measured as its net debt to EBITDA ratio will be 1.0, which is well inside the company’s target of a maximum ratio of 3.0. The acquisition is expected to have a positive impact on Volati’s earnings for 2017 and will contribute to increasing the return on equity. Akademibokhandeln is subject to significant seasonal variations with strong earnings in the fourth quarter of the year and weaker earnings in the first three quarters of the year. The company’s cash flows from operating activities amounted to SEK 94 million for 2016. Akademibokhandeln will comprise a new, fourth business area at Volati alongside Trading, Consumer and Industry. The change of ownership will not mean any changes for the around 500 employees or the franchise holders who operate 28 of the stores.

For further information about the acquistion, refer to the previous press release dated May 17, 2017.

About Akademibokhandeln

Akademibokhandeln is the market leading book retailer in Sweden with a market share of about 35% of consumer book retailing and has a strong offering for all product and delivery formats. With 108 stores nationwide, 80 under its own management and 28 run as franchises, together with online sales under the Akademibokhandeln and Bokus brands, the company operates modern and profitable sales channels focused on consumers, companies and public-sector operations. With its vision of conveying “the joy of reading to everyone, every day” Akademibokhandeln also wants to be a hub for culture and a meeting place for literature. For 2016, the Akademibokhandeln Group’s net sales amounted to SEK 1.8 billion and EBITDA to SEK 125 million.

Akademibokhandeln Holding AB has issued a SEK 500m secured bond, which was listed on Nasdaq Stockholm in May 2017. The bond extends for four years and carries an interest rate of STIBOR 3M + 6.0% and the outstanding bonds are redeemable by the company at 103% of face value from March 2019. As long as the bond loan is outstanding, restrictions exist governing how Volati can partake in cash flows from Akademibokhandeln’s operations.

For more information, please contact:

Mårten Andersson, CEO of Volati AB, +46 (0)72-735 42 84, marten.andersson@volati.se

Mattias Björk, CFO Volati AB, +46 (0)070-610 80 89, mattias.bjork@volati.se

Volati AB (publ)

Engelbrektsplan 1, SE-114 34 Stockholm

Tel: +46 (0)8-21 68 40, e-mail: info@volati.se, Corp. Reg. No. 556555-4317

About Volat

Volati is a Swedish industrial group formed in 2003, comprising some 40 operating companies divided into thirteen business units organised in four business areas: Trading, Consumer, Industry and Akademibokhandeln. Volati acquires mainly companies with proven business models, leading market positions and strong cashflow at reasonable valuations and develops these with an emphasis on long-term value creation. Volati’s strategy is to build on the identity and entrepreneurial spirit of the companies, adding, leadership, expertise, processes and financial resources. Volati has operations in 16 countries, with a total of about 1,700 employees and annual sales of approximately SEK 5bn. Volati’s ordinary shares and preference shares are listed on Nasdaq Stockholm. Further information is available at www.volati.se .

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