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Share 2016-09-26 17:29 RATOS B 39.60 SEK

Ratos acquires KVD Kvarndammen

2010-11-29

This information is disclosed in accordance with the Securities Markets Act, the Financial Instruments Trading Act or demands made in the exchange rules.

Ratos has concluded an agreement to acquire 100% of the shares in the auction and valuation company KVD Kvarndammen AB for an Enterprise Value of SEK 550m. The sellers are the Sixth AP Fund and the company's founders. Ratos will provide equity of approximately SEK 360m.

Kvarndammen (KVD) is Sweden's largest independent broker for cars. The company, which was founded in 1991, runs kvd.se where cars, heavy vehicles, machines, liquidation goods and surplus goods are offered for sale at weekly online auctions. KVD Kvarndammen has facilities at 12 locations in Sweden where all the items are inspected and valued prior to sale. The company includes Sweden's largest valuation portal for cars, bilpriser.se.

Today KVD Kvarndammen only accepts sales assignments from companies and authorities. Over 18,000 vehicles and 14,000 other auction items were sold in 2009 on kvd.se. Revenues comprise commissions on sales and services. The company has 165 employees and the head office is in Gothenburg. In 2009 KVD Kvarndammen posted sales of SEK 217m and operating profit (EBITA) amounted to SEK 36m.

"Kvarndammen has a unique business model where the company's independence, high number of unique visitors, and transparency create conditions for market prices. The company thereby delivers value to both buyer and seller. Since Kvarndammen is still a small player, we see good opportunities to capture market shares as well as for expansion within new areas," says Ratos CEO Arne Karlsson.

Ratos's holding will amount to 100%. The Enterprise Value for the acquisition amounts to SEK 550m, of which Ratos will provide equity of approximately SEK 360m. The acquisition is subject to approval from the relevant competition authorities and is expected to be completed in January 2011 at the latest.

For further information:
Arne Karlsson, CEO, via CEO's Assistant Nina Aggebäck +46 76 125 09 01
Emma Rheborg, Head of Corporate Communications & IR, +46 8 700 17 20