Announcement no. 15-2023
15 December 2023
North Media has concluded an agreement with Ge-Te Media Aktiebolag to acquire SDR Svensk Direktreklam AB and EGRO Konsult AB.
SDR is Sweden’s largest distributor of unaddressed printed matter and local newspapers to Swedish consumers. SDR expects to report revenue of approximately SEK 650 million and to deliver EBITDA of about SEK 50 million in 2023. The company expects to generate an increase in revenue and EBITDA for 2024.
North Media CEO Lasse Ingemann Brodt commented on the transaction:
“We consider SDR to be a very attractive business. The company is developing very positively and, like our Danish company FK Distribution, is extremely good at creating value for both the retail industry and for consumers through large-scale targeted and efficient distribution of printed matter and local newspapers. We see good opportunities to further develop SDR, while at the same time strengthening our product offerings in both Denmark and Sweden.”
Door-to-door distribution of leaflets is the preferred media for both Danish and Swedish consumers when doing their shopping. Leaflets is the strongest and most efficient marketing channel for the retail industry.
In Denmark, FK Distribution will distribute about 1.3 billion leaflets and local newspapers to 2.3 million households in 2023. A 2022 survey shows that door-to-door distribution of leaflets is extremely efficient. Almost 70 per cent of recipient households used leaflets to find bargains, and 59% of recipients made weekly purchases based on leaflets received.
In Sweden, SDR will distribute about 1.2 billion leaflets and local newspapers to 4.5 million households in 2023.
North Media is acquiring SDR at a price of SEK 350 million on a debt-free basis. The purchase price will be paid in cash.
The transaction is expected to close on 29 December 2023.
As reported in company announcement no. 14/2023, the Group is guiding for FY 2023 revenue of DKK 940-960 million and EBIT of DKK 145-160 million. The acquisition of SDR will have no effect on the guidance for 2023.
North Media expects to release its 2023 Annual Report on 28 February 2024.
For further information:
Lasse Ingemann Brodt, CEO tel. +45 20 24 32 92
Kåre Wigh, CFO tel. +45 25 65 21 45
