Hakon Invest signed an agreement today to acquire 50 percent of the
shares and voting rights in the home electronics chain Kjell & Co
Elektronik AB ("Kjell & Company"), which is a leading retailer of
home electronics accessories in Sweden. Kjell & Company owns and
operates 15 stores. During the 2006 calendar year, Kjell & Company is
expected to report sales of about SEK 260 M with favorable
profitability.
"Kjell & Company is a successful home electronics chain with a
well-developed and clear concept. Its success is based on a
combination of a high level of service, a clear price profile, sound
entrepreneurship and accessibility for customers. We see substantial
opportunities for Kjell & Company to further expand its business
concept over the coming years," says Stein Petter Ski, Senior
Investment Manager at Hakon Invest.
"Hakon Invest takes a very positive view of this investment. Working
together with the existing management, Hakon Invest will contribute
expertise and experience, a broad contact network and financial
backing. This will create opportunities for continued strong
expansion for Kjell & Company with new stores in Sweden," says Göran
Hesseborn, CFO and Head of Investments at Hakon Invest.
"We are very pleased to have Hakon Invest as a new joint owner. Hakon
Invest is an excellent partner for us, in part due to its objective
of long-term ownership, which means that we together can develop and
enhance Kjell & Company's business. We see many advantages to Hakon
Invest's investment strategy. Hakon Invest's expertise in retailing
through its ownership in ICA AB will provide us opportunities to
further refine our retail concept. Together we can realize our
ambition to be a nationwide retail chain by 2011 at the latest," says
Kjell Dahnelius, founder of Kjell & Company.
Kjell & Company will increase the pace of expansion through new
stores in the future. At present, contracts have been signed for five
stores that will open during 2006 and 2007. The ambition is that the
number of stores in Sweden will increase to about 40 over a five-year
period. The planned expansion will take place with retained favorable
profitability and be financed primarily with existing funds. Apart
from the stores, mail order and Internet sales are important sales
channels for Kjell & Company.
Hakon Invest is investing SEK 100 M in Kjell & Company, of which SEK
80 M will be paid for the purchase of existing shares and SEK 20 M
for subscription of newly issued shares. Hakon Invest's ownership
share will amount to 50 percent of the capital and voting rights.
Kjell & Company was started in 1990 by the three brothers Fredrik
Dahnelius, Markus Dahnelius and Mikael Dahnelius and their father
Kjell Dahnelius. Following Hakon Invest's acquisition, the four
founders will retain their positions in the company and remain as
owners of 50 percent of the capital and voting rights.
The transaction is subject to the customary conditions and government
approval. The transaction and the acquisition analysis are expected
to be completed during the third quarter.
For more information, contact:
Claes-Göran Sylvén
President and CEO
tel. +46 (0)8 - 553 399 64
Stein Petter Ski
Senior Investment Manager
tel. +46 (0)8 - 553 399 44
Pernilla Linger
IR Manager
tel. +46 (0)8 - 553 399 55
Hakon Invest, which is listed on the Stockholm Stock Exchange
(Stockholmsbörsen) O-list, conducts active and long-term investment
operations in retail-oriented companies in the Nordic region. Hakon
Invest owns 40% of ICA AB, the Nordic region's leading retail company
with focus on food. In addition, Hakon Invest owns 100% of the shares
in Forma Publishing Group, which is one of Sweden's largest
publishers. Further information about Hakon Invest is available at
www.hakoninvest.se.
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