Brief: Zebra Invests In Strax' Distribution Business In Europe

Strax AB

13/07/2023 07:49

July 13 (Reuters) - Strax AB  STRAX.ST :
    * SAID ON WEDNESDAY CO SECURES EUR 10 MLN INVESTMENT FROM
ZEBRA
INVEST GMBH FOR 50.1% IN STRAX' EUROPEAN BASED DISTRIBUTION
BUSINESS
    * ENTERPRISE VALUE OF STRAX EUROPEAN DISTRIBUTION BUSINESS
IN
TRANSACTION IS EUR 32 MLN
    * TRANSACTION WILL FURTHERMORE REDUCE DEBT WITHIN REMAINING
STRAX
BY EUR 12 MLN
    * TRANSACTION IS FIRST OF SEVERAL STRAX IS WORKING ON IN
PARALLEL,
MOST OF WHICH ARE EXPECTED TO CLOSE IN 2023
    * ZEBRA WILL OWN 50.1% OF STRAX GMBH WITH STRAX AB OWNING
REMAINING 49.9%
    * EFFECTIVE TRANSACTION DATE IS 1 JULY 2023 
    * EUROPEAN DISTRIBUTION BUSINESS OF STRAX WILL NO LONGER BE
CONSIDERED AS PART OF CONSOLIDATED FINANCIAL STATEMENTS OF STRAX
    * STRAX GMBH WILL CONTINUE TO DISTRIBUTE ALL STRAX BRANDS IN
EUROPE, INCLUDING URBANISTA, CLCKR AND PLANET BUDDIES
    * EUROPEAN DISTRIBUTION BUSINESS GENERATED SALES OF EUR 70.2
MLN
AND EBIT OF EUR 6.9 MLN IN 2022
    * TRANSACTION WILL REDUCE HEADCOUNT BY 105 FULL TIME
EQUIVALENTS
AND OPERATING EXPENSE BY 50% 
    * TRANSACTION WILL CONTRIBUTE WITH A SHARE OF PROFIT THROUGH
THE
EQUITY METHOD, THEREFORE MITIGATING EBIT IMPACT ON A
CONSOLIDATED BASIS
    * WE ARE TRANSITIONING TOWARDS A PURE HOUSE OF BRANDS
RETAINING
SIGNIFICANT OWNERSHIP IN A RESPECTED EUROPEAN BASED VALUE-ADDED
DISTRIBUTOR

        
 Source text for Eikon:  urn:newsml:reuters.com:*:nMFNbl5wl0
 Further company coverage:  STRAX.ST  

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