Polaris Private Equity (Polaris) has sold its holding, equivalent to 75 per cent of all shares, in Skånska Byggvaror to Byggmax, for SEK741 million. In addition to the initial purchase price, an additional payment of SEK110 million may also be made depending on the financial performance for Skånska Byggvaror during 2016.
Skånska Byggvaror is an online based retailer of refined do-it-yourself (D-I-Y) products, with operations in Sweden and Norway. Over the past 12 months Skånska Byggvaror had net sales of SEK690 million, growing by approximately 20 per cent year-on-year, and EBITA of SEK47 million (excluding non- recurring items).
“During the autumn we have prepared a change of ownership where a sale to a larger industry player has been an option. This is an attractive deal for all parties, in which Skånska Byggvaror is able to continue to develop under its own brand, but from Byggmax’s strong Nordic platform. This is an important deal for Polaris and we are proud of the company's development under our active ownership." says Peter Ankerst, Polaris Private Equity.
Polaris acquired Skånska Byggvaror in 2012 and has since then worked actively with the company’s omni-channel strategy, including the establishment of six new stores – four in Sweden and two in Norway. The product range has also been expanded, which has resulted in an increased annual average growth rate of 20 per cent, with good profitability, over the past three years.
"We are impressed by Skånska Byggvaror’s ability to grow turnover over time, while the company has been profitable. We see significant synergies between the companies, mainly that we can benefit from each other's assortments to boost sales. Skånska Byggvaror’s conservatories, which they assemble and sell under their own brand, is their largest category. Conservatories have positioned Skånska Byggvaror as a strong brand that combines good quality with low prices. The market for conservatories is expected to have good growth in the foreseeable future,” says Magnus Agervald, CEO Byggmax Group.
"Together with Byggmax we get an opportunity to extend our offer and at the same time increase our sales through Byggmax strong presence on the Nordic market. We know that our customers purchase building material when they finalise their DIYY-projects and we are happy to be able to provide this in the future. We look forward to continue our journey and strengthen our brand together with Byggmax." says Anders Johansson Eickhoff, CEO of Skånska Byggvaror.
