Volati divests NaturaMed Pharma and closes the Consumer business area
Volati has entered into an agreement and sold all of the shares in NaturaMed Pharma (“NMP”) to Vision Healthcare. The transaction is taking place at an estimated enterprise value of EUR 6 million and is expected to generate a capital loss of approximately SEK 95 million and a positive liquidity effect of approximately SEK 55 million for Volati. In connection with the transaction, Volati is closing the Consumer business area.
NMP is one of the Nordic region’s leading suppliers of nutritional supplements via subscription. Sales are made directly to consumers in Norway, Finland and Sweden. NMP reported revenue of SEK 157 million and EBITA of SEK 26 million in 2019. Vision Healthcare, based in Belgium, is a consumer healthcare company with a large portfolio of self-care brands and OTC products in several European countries. The purchase consideration of SEK 77 million for the shares has been settled in cash.
“NMP is a relatively small business that has little in common with Volati’s other business units. The company has shown a weak development since the acquisition in 2014 and in particular we have not been able to modernise its business model at a satisfactory pace. The company faces major investments if the trend is to be reversed and future profitability secured. We have been evaluating various options for the company for some time, including a change of ownership. Our overall assessment is that, despite a low enterprise value, the sale of NMP is value creating and allow us to focus on business areas with greater potential. In Vision Healthcare, NMP is gaining an ambitious industrial owner with strong marketing and omnichannel expertise. We are convinced that this provides the Company and management with the best conditions as they work to develop the business,” says Volati CEO Mårten Andersson.
The capital loss attributable to the sale of the shares in NMP together with the impairment loss recognised in Q3 2019 has affected Volati’s earnings by approximately SEK -195 million. The total cash flow for the entire ownership period, including acquisition and divestment consideration, is approximately SEK -100 million. The difference between the capital loss and cash flow is mainly due to regular repayments of internal loans from the Company.
The divestment of NMP also means that the Consumer business area will close. The first step was taken in November 2019 when Volati changed its ownership of me&i and a further step followed with the divestment of Besikta Bilprovning in October 2020.
“The Consumer business area has generated a very good overall return. Our focus going forward is to continue to develop the Trading, Akademibokhandeln and Industry business areas, and to grow individual business units that can eventually become independent business areas with clear industrial logic. Synergistic add-on acquisitions are a key part of our strategy. We also constantly evaluate acquisition opportunities that can broaden the Company’s operations to attractive new areas,” says Mårten Andersson.
The total capital gain for the business area amounts to approximately SEK 335 million, with a total cash flow of approximately SEK 760 million. The difference between the capital gain and cash flow is mainly due to repayments of internal loans, regular dividends from the business area and the fact that Volati fully consolidated me&i while only owning approximately 60 percent.
This information is information that Volati AB (publ) 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 16.30 CET on 21 December 2020.
For further information, please contact:
Mårten Andersson, CEO Volati AB, +46 72 735 42 84, marten.andersson@volati.se
Andreas Stenbäck, CFO Volati AB, +46 70 889 09 60, andreas.stenback@volati.se
Volati AB (publ)
Engelbrektsplan 1, SE-114 34 Stockholm
Tel: +46 8 21 68 40
Email: info@volati.se
Corp.reg.no.: 556555-4317
About Volati
Volati is a Swedish industrial group, formed in 2003, organised in four business areas: Trading, Consumer, Akademibokhandeln and Industry. Volati mainly acquires reasonably valued companies with proven business models, leading market positions and strong cash flows and develops them with a focus on long-term value creation. The strategy is to build on the companies’ identity and entrepreneurial spirit, adding leadership, expertise, processes and financial resources. Volati has operations in 16 countries, over 2,000 employees and annual sales of approximately SEK 7 billion. Volati’s ordinary shares and preference shares are listed on Nasdaq Stockholm. Further information is available at www.volati.se.