Gjensidige acquires Falck’s roadside assistance
Gjensidige Forsikring ASA has on 3 December 2021 agreed to acquire 100 per cent of the shares in Falck Räddningskår AB, including subsidiaries in Norway, Finland, Estonia and Lithuania (Falck RSA Nordic & Baltics) from Falck Investment Sverige AB (a subsidiary under Falck A/S), for SEK 1.4 billion on a debt and cash free basis. Falck RSA Nordic and Baltics is a leading roadside assistance provider with nationwide franchise networks in Sweden, Norway, Finland, Estonia and Lithuania. The acquisition is in line with Gjensidige's strategy to take a holistic approach to solving the customers’ needs and complements Gjensidige’s products and services in the Nordic mobility space. Closing is expected to take place in Q1 2022, subject to customary regulatory approvals. This will reduce the solvency margin of Gjensidige Forsikring Group, according to the approved Partial Internal Model, by approximately 12 percentage points, based on the figures as at 30 September 2021.
Falck RSA Nordic & Baltics offers roadside assistance and call centre services including emergency repairs, tire replacements, battery and bulb changes, battery booster as well as general towing services. Falck RSA has an extensive network of ~370 start-up locations in Sweden, Norway, Finland, Estonia and Lithuania. The group manages 1400+ franchise vehicles and owns ~60 vehicles. The group has ~260 employees and recorded EUR 75.8 million in revenues and EUR 6 million in EBITA in 2020. Falck RSA Nordic and Baltics will continue as a separate entity, and in a transitory period under the current brand.
“Our key priority over the next years is to maintain and further strengthen our direct customer relationship and become an even better and more relevant partner for our customers. Falck RSA Nordic and Baltics’ road assistance services is a very good strategic fit for us and provides a natural complement to our offerings in the mobility space, with focus on convenience for our customers. Falck RSA Nordic and Baltics is a highly competent organisation and will be further developed under our ownership, to the benefit of all of Falck’s customers. We see significant potential in developing these services further and look forward to exploring value enhancing opportunities for both customers in Gjensidige and Falck RSA together with the Falck RSA Nordic and Baltics organisation”, says CEO in Gjensidige, Helge Leiro Baastad.
“I am happy, that we have found an ambitious owner, with an appetite and strong interest to invest in the roadside business outside Denmark and thereby provide further development opportunities for our colleagues. It’s a successful business unit and some very skilled employees we are divesting”, says Jakob Riis, CEO of Falck Group.
This release contains inside information related to Gjensidige Forsikring ASA pursuant to the EU Market Abuse Regulation and is subject to the disclosure requirements pursuant to Section 5-12 the Norwegian Securities Trading Act.
This release contains alternative performance measures (APMs). APMs are described at www.gjensidige.no/reporting in a document named APMs Gjensidige Forsikring Group Q3 2021.
This release is issued by Mitra H. Negård, Head of Investor Relations at Gjensidige Forsikring ASA.
Date and time of publication: 10:00 CET, 03.12.2021