EQT V new majority owner in XXL Sport & Villmark

• EQT V new majority owner in XXL, the fastest growing sporting goods retailer in the Nordic region.
   
• Founder Øivind Tidemandsen retains a 30% ownership and continues as chairman.
   
• EQT to provide support, expertise and resources for expansion into Sweden and further growth in Norway.
   

EQT V (“EQT”) has agreed to acquire a majority ownership in the Nordic region’s fastest growing sports retail chain, XXL Sport & Villmark (XXL), from the existing owners. The founder and current main shareholder together with management will remain as substantial shareholders alongside EQT V. Other existing shareholders have sold all of their shares to EQT. 

“With the aggressive expansion plans we have, this is a good time for XXL to have a new major shareholder like EQT coming in. I am looking forward to continuing to grow and expand XXL together with EQT and the resources they can provide,” says Øivind Tidemandsen who will continue as chairman of XXL. 

XXL was founded in 2001 and today owns and operates 14 sporting goods mega-stores located in the largest cities in Norway. In the period 2003 to 2010 sales have grown on average by 30% per year and in 2010 XXL expects to reach sales of almost NOK 2 billion. XXL is the fastest growing player on the Norwegian sporting goods retail market with a market share of close to 15%, which is increasing rapidly. 

Together with the founder, EQT intends to accelerate a further expansion in the Norwegian market and enter the Swedish market. Two Swedish stores in Stockholm and one in Gothenburg are planned to open later in 2010, and XXL’s concept will be unique in the Swedish sporting goods market. 

“We look forward to providing Swedish customers with a whole new experience in sporting goods including the lowest prices in the market,” says Fredrik Steenbuch, CEO of XXL. 

“XXL is a very attractive company with great potential for expansion in Norway, Sweden and beyond. The Company has a unique concept and a strong management team who together with its experienced founder have built a solid platform. We are backing a team which showed remarkable success in the 90’s with their expansion of Elkjøp/Elgiganten from its Norwegian base throughout the Nordic region. With our network of industrial advisors, resources, and experience from similar situations we look forward to providing support for XXL’s similar growth plans,” says Christian Sinding, Senior Partner at EQT Partners AS in Norway. 

EQT has extensive experience from the retail sector including its investment in Plantasjen from 2001 to 2007. During this period the Norwegian garden superstores chain expanded successfully into other Nordic countries and the number of stores increased from 27 to 72. 

The XXL concept of having the largest stores with branded goods at the market’s lowest prices has revolutionized the Norwegian sporting goods retail sector in the past 10 years and XXL CEO Fredrik Steenbuch sees large similarities between the Norwegian and Swedish markets. 

“We can offer well-known brands at the lowest prices due to our large stores and stream-lined and efficient operations. We are convinced that the Swedish customers will find our assortment and prices at least as attractive as the Norwegians have. With the additional support from EQT I believe we have a very strong position when we now enter the Swedish market,” he says.

The sports retail markets in both Norway and Sweden have grown steadily over the past decade and are expected to continue growing in the coming years. The sports retail market has exhibited limited exposure to economic cycles and has been relatively unaffected by the recent economic downturn. The Nordic markets are among the biggest per capita spenders on sporting and outdoor equipment in Europe.

Advisors to the sellers were Carnegie ASA, Guardian Corporate AS, Ernst & Young and Thommessen.  Advisers to the buyer were Arctic Securities ASA, McKinsey, Deloitte, and Steenstrup Stordrange. 

Contacts:

XXL Sport & Villmark

Fredrik Steenbuch, CEO +47 924 36 855