Qliro Group sells Health and Sports Nutrition Group
Press release, Stockholm, 21 November 2017
Qliro Group AB (publ) has entered into an agreement to sell its subsidiary Health and Sports Nutrition Group HSNG AB (“HSNG”) to Orkla. The enterprise value of HSNG in the transaction is SEK 360 million on a cash and debt free basis and with a normalized working capital. The transaction is expected to be completed in the first quarter of 2018. HSNG will remain a partner to Qliro Financial Services and CDON Marketplace after the transaction.
“Following the sale of HSNG, Qliro Group has achieved the structure that we envisioned when we revised our strategy in January. The migration to online is moving faster than ever before and our three core business areas, CDON Marketplace, Nelly and Qliro Financial Services, are well positioned to benefit from this. We can now fully focus on and invest in our core businesses, including expanding Qliro Financial Services”, says Marcus Lindqvist, President and CEO of Qliro Group.
HSNG was established in 1996 and was acquired by Qliro Group in 2008. Since the acquisition, HSNG has grown from a turnover of approximately SEK 110 million to almost SEK 800 million during the last twelve months up to 30 September 2017.
“As part of Qliro Group, HSNG has established itself as a leading online provider of sports nutrition in the Nordic region with a strong portfolio of own brands. We now look forward to continuing to cooperate with the company as a partner to both CDON Marketplace and Qliro Financial Services”, says Marcus Lindqvist, President and CEO of Qliro Group.
The transaction is subject to approval from the competition authorities in Sweden, Norway and Austria and is expected to be completed during the first quarter of 2018. The enterprise value of HSNG in the transaction is SEK 360 million on a cash and debt free basis and with a normalized working capital at closing.
Qliro Group’s book value of the shares in HSNG was SEK 223.8 million at the end of the third quarter 2017. The effect on the results of the transaction will be determined at closing. HSNG is expected to be reported as an item under discontinued operations from the fourth quarter 2017.
This information is information that Qliro Group AB is obliged to make public pursuant to the EU Market Abuse Regulation. The information was submitted for publication, through the agency of the contact persons set out below, at 01.00 a.m. CET on 21 November 2017.
Carnegie Investment Bank AB is acting financial adviser and Advokatfirman Cederquist is acting legal adviser to Qliro Group in the transaction.
For more information, please visit www.qlirogroup.com, or contact:
Marcus Lindqvist, CEO
Tel: +46 (0)10 703 20 00
Questions from media, investors and research analysts:
Erik Löfgren, Head of Communications
Tel: +46 70 080 7506
E-mail: press@qlirogroup.com, ir@qlirogroup.com
About Health and Sports Nutrition Group
Health and Sports Nutrition Group operates the online stores Gymgrossisten.com (Fitnesstukku.fi in Finland, Bodystore.dk in Denmark and Gymsector.com in Austria and other EU countries), Bodystore.com, Milebreaker.com (with limited operations) and conducts wholesale operations through Fitness Market Nordic. Gymgrossisten also has franchised physical stores. Together, the internet stores registered 23.6 million site visits and received 1.2 million orders in 2016.
About Qliro Group
Qliro Group is a leading Nordic e-commerce group in consumer goods, lifestyle products and related financial services. Qliro Group operates CDON.COM (the leading Nordic marketplace), Nelly.com and NLYman (fashion), Gymgrossisten and Bodystore.com (health and training), and Qliro Financial Services. The Group had sales of SEK 4 billion in 2016. Qliro Group’s shares are listed on the Nasdaq Stockholm in the midcap segment under the ticker symbol QLRO.
Tags: