Electra to buy half of Danish El-Salg and Euronics

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Last year, the cooperation between the Swedish wholesaler Electra Gruppen and Danish El-Salg was extended.
Now acquires Electra Gruppen 45 percent of El-Salg and establish themselves in Denmark as a major player behind the new Euronics-chain.
“A major strategic decision, and our store chains can broaden its offering of consumer electronics products,” says El-Salg’s CEO Thomas Holm Hedehus.

During the past year, the Electra Group delivered a growing amount of consumer electronics products to Danish El-Salg A / S.
Historically, El-Salg has supplied around 300 stores in Denmark with appliances. El-Salg has now established Euronics in Denmark and therefore broadened its product range to include consumer electronics products such as television, telecommunications, photo and data. These products will in future be delivered by the Electra Group.

For this reason, El-Salg transfers its current operating business to a newly formed company in which the Electra Group will own 45 percent and El-Salg 55 percent. In 2014, the turnover of El-Salg’s Danish operations was 486 MDKK excluding consumer electronics products.

The new Euronics attracted old Expert-dealers in Denmark and Tomas Holm Hedehus believed last year that there was room for 40-50 new stores, 20-25 of them to be established this year. Euronics Denmark has now 22 stores according to its website, avoiding the largest cities.

“El-Salg has established chain Euronics in Denmark, and that is especially interesting. We also have access to El-Salg’s purchasing channels, which enables us to greater shared volumes. Additionally, the cooperation gives significant business opportunities for the installation of our sales system. As a result of the collaboration, there are synergies to be exploited within the organization, IT and retail network, “says Electra Gruppen’s CEO Anneli Sjöstedt.

While the Electra Group is continuing its efforts to grow in the Nordic region, it means that El-Salg ensures a channel for the purchase of consumer electronics products and the necessary support for logistics.
The cooperation is subject to approval by El-Salg’s General Assembly which will be held in approximately 3 weeks.

“Electra Group has extensive experience in supplying consumer electronics products and have agreements with all of our key suppliers. In addition to product supply, Electra Group’s expertise in logistics and IT were key factors when we decided to deepen our cooperation. The partnership also enables us to offer old and new stores within the dealers a significantly wider range of products at attractive prices, “says Tomas Holm Hedehus, President of El-Salg.