Byggmax Group acquires Skånska Byggvaror Byggmax acquires

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). "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. "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. Byggmax has been advised by Danske Bank, Lindahl and EY. Skånska Byggvaror and Polaris Private Equity have been advised by Carnegie and Mannheimer Swartling. Byggmax publish the information in accordance with the Act (2007: 528) regarding the securities market. The information was submitted for publication on 4th November 2015 at 08.30. For more information, please contact: Magnus Agervald, CEO Byggmax, +46 761 19 0020, magnus.agervald@byggmax.se Anders Johansson Eickhoff, CEO Skånska Byggvaror, +46 733 22 30 00, anders.johanssoneickhoff@skanskabyggvaror.se Peter Ankerst, Partner at Polaris Private Equity, +46 701 30 28 30, pa@polarisequity.dk About Byggmax Group Byggmax Group consists of Byggmax and Buildor. The home improvement discounter chain Byggmax was launched in 1993 and has 75 stores in Sweden, from North to South. Turnover in 2014 was approximately SEK 3,5 billion, and the company continues to expand. The website sells the entire store assortment, as well as an extensive extra ordering assortment. Since the start, the business concept has been to be the best and most inexpensive alternative for consumers in need of high-quality construction materials. Byggmax has a drive-in system in all stores, where the customers bring their cars and load the material directly on to them. This makes it simple and quick for the customers to shop, especially when shopping heavy building materials. Buildor is a fast growing on-line retailer within building materials, with a turnover of almost SEK 50 million the last 12 months (30 september 2015), and with a growth rate of more than 150% compared to the previous 12 months. Buildor was acquired by Byggmax Group in November 2015. Byggmax Group has been listed on NASDAQ OMX Stockholm since June 2010. About Skånska Byggvaror Skånska Byggvaror is an expansive and profitable online-based Nordic distance retailer of refined building products for the DIY market. Skånska Byggvaror strives to offer a carefully selected and affordable product range to DIY customers, mainly through its web platform. The business model is characterised by a high number of products under its own brand, control of the value chain from product development to home delivery and a high level of service regardless of sales channel. In addition to the web, Skånska Byggvaror has six physical stores, four in Sweden and two in Norway. Since its founding in 1965, the company has successfully developed from a mail order vendor to an established distance retailer with over six million visits on the web annually. (www.skanskabyggvaror.se) About Polaris Private Equity Polaris Private Equity is a Danish/Swedish private equity fund, based in Copenhagen, focusing on buy-out investments in well-established lower mid-market companies in Denmark and Sweden. Polaris’ first fund of €188 million was realised in 2008, and Polaris currently has more than €1 billion under management in three active funds. Polaris invests in companies with strong development potential and a typical turnover of €25-200 million. To date, Polaris has invested in 32 companies, exited 19 and has made more than 50 add-on investments in portfolio companies. (www.polarisequity.dk)