Industrivärden will be a new, long-term owner of ICA, one of the leading retail companies in the Nordic region with sales of approximately SEK 100 billion. Industrivärden's share of ownership in the new ICA Gruppen (today Hakon Invest) will amount to 10% of the votes and capital after Hakon Invest AB's acquisition of the entire ICA AB and subsequent new issue. Industrivärden's investment is estimated to be approximately SEK 2.4 billion, including the new issue. ICA has shown favorable and stable profit generation over business cycles based on a unique and proven competitive business model, a strong brand and professional management. For Industrivärden, the involvement in ICA therefore represents a valuable complement to the company's industrial portfolio, with good cash flow generation and favorable value potential.
Industrivärden has agreed to buy a block of shares in Hakon Invest AB from ICA-handlarnas Förbund (the Association of ICA retailers) corresponding to 10% of the votes and capital. Hakon Invest AB, which currently owns 40% of ICA AB, has agreed to acquire the remaining 60% of the company from Royal Ahold NV. After the deal, Hakon Invest AB, which is intended to change its name to ICA Gruppen, will include the business areas; food retail, banking, real estate and non-food, which includes other businesses in the former Hakon Invest. As part of the financing of the transaction, Hakon Invest AB will carry out a rights issue. Industrivärden intends to subscribe for its allotment in the issue and to underwrite the new issue together with ICA-handlarnas Förbund.
The deal is contingent upon receiving regulatory approval from the pertinent authorities of the transactions, which are expected to be fully completed in April 2013. Further information on the transactions can be found in a press release from Hakon Invest AB.
Commenting on the deal, Anders Nyrén, President and CEO of Industrivärden, said: "We appreciate the opportunity that ICA-handlarnas Förbund has given us for this investment, and we have a shared view on matters such as corporate governance, business professionalism, financial goals and long-term strategy, which creates good conditions for the new ICA Gruppen to be a long-term, attractive investment for shareholders that delivers a high return. For Industrivärden's part, we will mainly contribute our experience and knowledge about strategic, financial and corporate governance matters. ICA-handlarnas Förbund, for its part, has a long record of experience and great knowledge about the retail sector. The investment gives us a long-term ownership position in one of the leading retail companies in the Nordic region. ICA is a very strong brand, and the company has shown good volume growth and rising margins over a number of years. This is an impressive achievement in a highly consolidated food retail market. The foundation for this success is a unique business model that is based on local entrepreneurship combined with economies of scale in purchasing and investments, among other areas. This, together with ICA's professional management and talented employees, make us highly confident in ICA Gruppen's future potential."
Stockholm, February 11, 2013
AB INDUSTRIVÄRDEN (publ)
For further information, please contact:
Anders Nyrén, President and CEO, tel. +46-8-666 64 00
The information provided in this press release is such that AB Industrivärden (publ) is obligated to publish pursuant to the Securities Market Act (SFS 2007:528) and/or the Financial Instruments Trading Act (SFS 1991:980). Submitted for publication at 07:00 a.m. on February 11, 2013.