Weifa ASA : Detailed Stock Exchange Announcement

Weifa ASA - Detailed Stock Exchange Announcement: Weifa's Acquisition of Asan

Oslo, 18 December 2015

Weifa ASA ("Weifa" or the "Company") entered 17 December 2015 into an agreement with Orkla ASA to acquire Cederroth AS, the company that on closing of the transaction will own the Norwegian category leading intimate care brand Asan and its Swedish counterpart Sana (jointly referred to as "Asan"), for a total consideration of NOK 115 million the "Acquisition").

The Asan portfolio includes products within the mild intimate care soap-, body and shower-, wet wipes- and fresh categories. The portfolio generated net sales of NOK 52.7 million in 2014 (Norway and Sweden combined). For the Asan portfolio, Weifa will target EBITDA margin levels in a range around Weifa's current level, and the transaction is expected to be accretive on Weifa's net profit from the first year of operation.

Asan holds a leading position in the Norwegian market for intimate care. The Asan products have outstanding awareness and loyalty levels among consumers and Asan is also a leading brand in the general shower category. More than 90 per cent of Asan's sales are generated in the Norwegian grocery trade.

"The Asan portfolio fits perfectly with Weifa's current offering of intimate care products and strengthens Weifa's position as a leading Consumer health company. Weifa is about brand management. Value creation in brand portfolios and sales through a network of wholesalers are our core competencies and our normal line of business. We are convinced that we can add value to the Asan portfolio in the same way that we have done with our flagship brands of Paracet and Ibux", says Kathrine Gamborg Andreassen, the CEO of Weifa.

Weifa has identified several areas where the Company can utilize its core competencies to develop the product portfolio further - both through product- and channel development. These initiatives include leveraging Weifa's network of wholesalers, improve penetration in the pharmacy channel for the intimate care category and potential new innovative products based on the current Weifa portfolio combined with the Asan product line.

The Acquisition is in line with Weifa's expressed strategy of expanding both organically and by M&A, as well as the ambition to establish a Nordic market position.

The agreement between Weifa and Orkla is subject to the approval of the relevant competition authorities, and the Transaction is expected to close in January 2016.

The Acquisition is financed by a private placement (the "Private Placement") completed 18 December 2015. The Company raised NOK 118.5 million in gross proceeds through placing 118.5 million new shares. Reference is made to the stock exchange notice dated 18 December 2015.

Carnegie acted as financial advisor to Weifa in relation to the Acquisition and the Private Placement.

About Cederroth AS:

Cederroth AS has been through a carve-in and carve-out process prior to the transaction so that the entity only consists of business related to the Asan and Sana brands. For this reason, historical figures for Cederroth AS do not reflect the assets that Weifa acquire through the Acquisition. For this reason, Weifa presents the relevant net sales figures for the acquired assets.

Asan financials:

The Board of Directors prior to the transaction with Weifa consists of Johannes Arbo Høeg, Stig Ebert Nilssen and Jan Roar Nordby. Note that the Board of Directors will resign from their positions after the close of the transaction.

There are no, nor are there expected to be any, agreements made that would benefit board members or key personnel at Weifa as a result of the transaction. The transaction will not include any employees in Cederroth AS. Weifa will enter into a Transitional Service Agreement and a Contract Manufacturing Agreement for the Asan and Sana products at market terms with Cederroth AB.

For further information, please contact:
Kathrine Gamborg Andreassen
CEO
+47 951 78 680
kathrine.gamborg.andreassen@weifa.no

Simen Nyberg-Hansen
CFO
+47 9820 6355
simen.nyberg-hansen@weifa.no

About Weifa:
Weifa is Norway's leading Consumer health company. Weifa supplies pharmaceutical products and lifestyle products that address the essential needs of consumers, customers and professional partners. The Company has a strong position in Norway and is the market leader in pain relief, with well-established brands such as Paracet and Ibux, and is also present in other key areas such as dietary supplements and treatment for colds and respiratory problems. Weifa is listed on the Oslo Stock Exchange and has its head office in Oslo. In 2014, the Group had a turnover of approximately NOK 316m in 2014 (after adjusting for the divestment of the B2B business). The company currently has approximately 30 employees.