Eniro to divest WLW
Eniro has reached an agreement to sell its German subsidiary Wer liefert was? (WLW) to the Italian group Seat Pagine Gialle. The transaction will be effected through the sale by Eniro of 100 percent of the shares in WLW for a payment corresponding to an enterprise value of EUR 115 M. The sale is expected to result in a capital gain, which is preliminary estimated to exceed SEK 100 M.
“After previous acquisitions, primarily in Norway and Denmark, we now have a very strong position in local searches in the entire Nordic region and in Poland. I am very pleased that through the promised sale of WLW, we can fulfill our strategy of focusing on our prioritized markets,” says Eniro’s President and CEO Tomas Franzén.
The sale is expected to be completed on September 30, 2007 and is subject to approval by the competition authorities.
According to an agreement with Eniro’s banks, Eniro does not need to use the proceeds from the sale of WLW to amortize the company’s loans.
Wer liefert was? (www.wlw.com) offers a supplier search service with the same name as the company (Who supplies what?). This service is the market-leader within Internet-based B2B search services for the target group commercial purchasers. The service has been available on the Internet since 1995, and as of 2000, printed directories are no longer published. The company’s offices are located in Hamburg. In 2006, WLW reported sales of SEK 325 M and EBITDA of SEK 70 M with some 250 employees.
Ernst & Young Transaction Advisory Services has acted as advisors in the transaction.