Byggmax Group acquires Skånska Byggvaror
Byggmax acquires all outstanding shares in Skånska Byggvaror for SEK 741 million initially, corresponding to an enterprise value of SEK 847 million on a cash and debt free basis. In addition to the initial purchase price there is a possibility for the shareholders of Skånska Byggvaror to get an additional payment of SEK 110 million, if the EBITDA in 2016 exceeds SEK 67 million, with a maximum pay-out at an EBITDA of SEK 79 million or above.
Skånska Byggvaror is an online based retailer in the do-it-yourself market for refined building material. The Company has operations in Sweden and Norway with an assortment focused on the building's interior and exterior environments, ranging from windows and doors to storage and conservatories. Over the last 12 months Skånska Byggvaror had net sales of SEK 690 million, growing by approximately 20 per cent year-on-year, EBITA of SEK 47 million and EBITDA of SEK 53 million (both before non-recurring items).
"Together with Byggmax we get an opportunity to extend our offer and at the same time increase our sales through Byggmax strong Nordic platform. We know that our customers purchase building material when they finalize their DYI-projects and we are happy to be able to provide this in the future directly to our customers. We look forward to continue our growth journey and develop our strong brand together with Byggmax." says Anders Johansson Eickhoff, CEO of Skånska Byggvaror.
“During the autumn we have prepared a change of ownership where a sale to a larger industry player has been one of the options. This is an attractive deal for all parties, in which Skånska Byggvaror is able to continue to develop under its own brand, but from Byggmax’s strong Nordic platform." says Peter Ankerst, Polaris Private Equity.
The potential additional payment is based on Skånska Byggvaror’s financial performance during 2016. The transaction is subject to approval by the Competition Authority. Byggmax expects the transaction to be completed in the fourth quarter 2015. The transaction will have a positive impact on Byggmax's earnings per share. The acquisition of Skånska Byggvaror is financed through increased debt. Skånska Byggvaror’s net debt and enterprise value as per 30 September 2015.
“We are impressed by Skånska Byggvaror’s ability to grow turnover over time, while the company has been profitable. We see significant synergies between the companies, mainly that we can benefit from each other's assortments to increase sales. Skånska Byggvaror’s conservatories, which they assemble and sell under their own brand, is their largest category. Conservatories have positioned Skånska Byggvaror as a strong brand that combines good quality with low prices. The market for conservatories is expected to have good growth in the foreseeable future. says Magnus Agervald, CEO Byggmax Group.”