In February, ICA AB announced that its subsidiary, ICA Meny, was for sale. Now an agreement has been reached on the sale of ICA Meny to Nordic Capital.

ICA Meny is a leading supplier to restaurants, foodservice sector, and convenience stores in Sweden and Norway. Net sales in Sweden and Norway together amounted to SEK 5,778 million in 2005, an increase of 15 percent compared to the previous year. The company increased operating income to SEK 11 million (SEK -53 million, 2004).

The sale results in a capital gain for ICA AB of approximately SEK 360 million. Both parties are awaiting the approval of the European Commission before the deal can be finalized.

• For ICA it was either a matter of concentrating heavily on the restaurant and foodservice sector or selling ICA Meny. The sale of ICA Meny will allow us to focus even more on our core business, retail. At the same time, ICA Meny gains a professional owner in Nordic Capital that will be able to make a significant contribution to the continued positive growth of the company, says Kenneth Bengtsson, President and CEO, ICA AB.
• Nordic Capital is excited about the opportunity to acquire ICA Meny and to work with the management team to further develop and expand the business. As a stand-alone company, ICA Meny has the opportunity to further strengthen its market position in a fragmented industry and to achieve continued growth by improving its service offering, says Peter Hansson, Partner, Nordic Capital.

ICA AB’s Financial Advisor has been Catella Retail.

For further information, please contact:

Kenneth Bengtsson, President and CEO, ICA AB, tel +46 8 561 502 58

Peter Hansson, Partner, Nordic Capital, tel +46 8 440 50 50

ICA's press hotline, tel +46 70 253 66 60