Byggmax Group Completes the Acquisition of Skånska Byggvaror

Regulatory News:

Byggmax (STO:BMAX) completes the acquisition of all outstanding shares in Skånska Byggvaror. Total consideration is SEK 936 million, comprised of both the purchase of the shares as well as refinancing of the loans in Skånska Byggvaror. In addition to the initial purchase price there is a possibility for the shareholders of Skånska Byggvaror to get an additional payment of SEK 110 million, if the EBITDA in 2016 exceeds SEK 67 million, with a maximum pay-out at an EBITDA of SEK 79 million or above. Anders Johansson Eickhoff, CEO of Skånska Byggvaror, becomes a member of the management team of Byggmax.

Skånska Byggvaror is an online based retailer in the do-it-yourself market for refined building material. The Company has operations in Sweden and Norway with an assortment focused on the building's interior and exterior environments, ranging from windows and doors to storage and conservatories. Over the last 12 months Skånska Byggvaror had net sales of SEK 690 million, growing by approximately 20 per cent year-on-year, EBITA of SEK 47 million and EBITDA of SEK 53 million (both before non-recurring items, based on Q3 2015).

The potential additional payment is based on Skånska Byggvaror’s financial performance during 2016. The transaction will have a positive impact on Byggmax's earnings per share. The acquisition of Skånska Byggvaror is financed through increased debt.

Byggmax publish the information in accordance with the Act (2007: 528) regarding the securities market. The information was submitted for publication on 4th January 2016 at 1:00 pm.

About Byggmax

Byggmax Group consists of Byggmax and Buildor. The home improvement discounter chain Byggmax was launched in 1993 and has 76 stores in Sweden, from North to South. Turnover in 2014 was approximately SEK 3,5 billion, and the company continues to expand. The website sells the entire store assortment, as well as an extensive extra ordering assortment. Since the start, the business concept has been to be the best and most inexpensive alternative for consumers in need of high-quality construction materials. Byggmax has a drive-in system in all stores, where the customers bring their cars and load the material directly on to them. This makes it simple and quick for the customers to shop, especially when shopping heavy building materials. Buildor is a fast growing on-line retailer within building materials, with a turnover of almost SEK 50 million the last 12 months (30 september 2015), and with a growth rate of more than 150% compared to the previous 12 months. Buildor was acquired by Byggmax Group in November 2015. Byggmax Group has been listed on NASDAQ OMX Stockholm since June 2010.

About Skånska Byggvaror

Skånska Byggvaror is an expansive and profitable online-based Nordic distance retailer of refined building products for the DIY market. Skånska Byggvaror strives to offer a carefully selected and affordable product range to DIY customers, mainly through its web platform. The business model is characterised by a high number of products under its own brand, control of the value chain from product development to home delivery and a high level of service regardless of sales channel. In addition to the web, Skånska Byggvaror has six physical stores, four in Sweden and two in Norway. Since its founding in 1965, the company has successfully developed from a mail order vendor to an established distance retailer with over six million visits on the web annually. (www.skanskabyggvaror.se)

About Polaris Private Equity, from which Byggmax is acquiring Skånska Byggvaror

Polaris Private Equity is a Danish/Swedish private equity fund, based in Copenhagen, focusing on buy-out investments in well-established lower mid-market companies in Denmark and Sweden. Polaris’ first fund of €188 million was realised in 2008, and Polaris currently has more than €1 billion under management in three active funds. Polaris invests in companies with strong development potential and a typical turnover of €25-200 million. To date, Polaris has invested in 32 companies, exited 19 and has made more than 50 add-on investments in portfolio companies. (www.polarisequity.dk)

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