Axfood: Dagab Acquires Saba’s Warehouse Operation in Helsingborg

Regulatory News:

Axfood: (STO:AXFO)

Dagab Inköp & Logistik AB and Saba Logistics AB, part of Dole Food Company, have signed a Letter of Intent under which Dagab will acquire Saba’s warehouse operation in Helsingborg, effective 1 January 2017.

The acquisition entails that Dagab will take over all equipment and the warehouse’s 150 employees, and will sign a five-year lease with Saba.

"This acquisition gives us a secure means of supporting the fantastic volume growth we have had in fruits and vegetables in recent years and gives us an opportunity for further growth,” comments Nicholas Pettersson, President of Dagab. "It also feels very positive to integrate the warehouse operations for fruits and vegetables within Dagab and that going forward we will have responsibility and control over the entire value chain for Axfood’s store chains.”

Up until now Dagab has handled its own purchasing of fruits and vegetables as well as transports to Axfood’s Willys, Hemköp, Tempo and Axfood Snabbgross store chains, while Saba has performed the warehouse services for Dagab.

At Axfood we work with passion for food and people. Our strength is in developing and driving successful grocery formats in the Swedish market with responsibility for the environment and sustainable development. Axfood includes the Willys and Hemköp chains as well as the Tempo, Handlar’n and Direkten formats, which are proprietor-owned and organized within Axfood Närlivs. B2B sales are handled through the Axfood Snabbgross chain, and wholesaling is conducted through Dagab. Axfood is listed on Nasdaq Stockholm, and the principal owner is Axel Johnson AB. Read more at www.axfood.se.

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