Brief: Oriola's Kronans Apotek And Apoteksgruppen To Merge

Oriola Oyj

09/02/2022 07:07

Feb 9 (Reuters) - Oriola Oyj  OKDBV.HE :
    * ORIOLA'S KRONANS APOTEK AND APOTEKSGRUPPEN TO MERGE INTO A
NEW
COMPANY - SYNERGY IN FOCUS
    * NEW COMPANY TO BE ESTABLISHED WILL HAVE OVER 470
PHARMACIES AND
FULL ONLINE PHARMACY OPERATIONS
    * NEW COMPANY TO BE ESTABLISHED WILL HAVE ILLUSTRATIVE
COMBINED
REVENUE OF EUR 1,140 MILLION AS OF 2020 IN SWEDEN
    * NEW COMPANY IS EXPECTED TO BE THIRD LARGEST PLAYER IN
SWEDISH
PHARMACY MARKET BY REVENUE
    * AN ESTIMATED COMBINED MARKET SHARE OF 25 PERCENT.
    * NEW COMPANY TO BE ESTABLISHED, OWNED 50/50 PERCENT EQUALLY
BY
ORIOLA AND EUROAPOTHECA.
    * ORIOLA CONSUMER'S ENTERPRISE VALUATION IS APPROXIMATELY
EUR 400
MILLION
    * APOTEKSGRUPPEN IS VALUED AT APPROXIMATELY EUR 300 MILLION.
    * TO RECEIVE A ONE-OFF CASH CONSIDERATION OF APPROXIMATELY
EUR 24
MILLION FROM EUROAPOTHECA FOR REACHING 50/50 PERCENT OWNERSHIP
    * TRANSACTION IS ESTIMATED TO CREATE ANNUAL RUN-RATE
SYNERGIES OF
APPROXIMATELY EUR 25 MILLION ON EBITDA LEVEL.
    * SYNERGIES ARE EXPECTED TO REALISE IN FULL BY END OF THIRD
YEAR
FROM CLOSING
    * ONE-OFF COSTS AND INVESTMENTS RELATING TO INTEGRATION AND
SYNERGY EXTRACTION AT NEW COMPANY ARE ESTIMATED TO BE
APPROXIMATELY EUR 25 MILLION
    * TRANSACTION WILL RESULT IN AN ESTIMATED ONE-TIME LOSS OF
APPROXIMATELY EUR 10 MILLION
    * PARENT COMPANY WILL RECOGNISE A LOSS OF APPROXIMATELY EUR
100
MILLION AS A RESULT OF LOAN RECEIVABLES
    * TRANSACTION IS SUBJECT TO COMPETITION AUTHORITIES'
APPROVAL AND
IS EXPECTED TO CLOSE AT LATEST DURING SECOND HALF OF 2022.
    * ORIOLA HAS OWNED 100% OF KRONANS APOTEK SINCE 2012
    * DURING NEXT 2-3 YEARS NEW COMPANY WILL CONCENTRATE IN
CAPTURING
SYNERGIES

Source text for Eikon:  ID:nWkr2ZZZz7 
Further company coverage:  OKDBV.HE 

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