Swedol acquires Grolls and becomes one of the leaders in work clothes and personal protection in the Nordic countries.
Swedol writes that personal protection and work already account for a large and rapidly growing part of Swedol sales. Along with Grolls the company will become one of the leaders in this field in the Nordic countries. Grolls have strong own brands in workwear and personal protection – Björnkläder preferably in Sweden, Univern in Norway and Nytello primarily for the service sector.
“We are impressed by the development of Grolls and has followed the company for a long time. Grolls has a product portfolio that complements Swedol existing product portfolio and a business-driven organization with dedicated employees. Grolls contribute specialist expertise in an area that is strategically important for Swedol ” says Clein Ullenvik Johansson, CEO, AB Swedol.
Swedol now acquires all shares in Grolls from Litorina and the management in Grolls. The total amount is about 790 million SEK and is subject to some adjustment mechanisms and establishes before final closing.
At the end of 2015 Grolls had 48 own stores and about 365 employees. Most of the operations are conducted in Sweden and Norway, but the company also has stores in Finland and Estonia.
Together the two companies will have 97 stores and about 870 employees. Pro forma 2015 the joint company sales are 2.5 billion SEK with an operating profit of about 165 million (adjusted for non-recurring items and before synergies).
“With this deal Grolls will get a long-term industrial owner. Grolls excellence in personal protection and work clothes fit well with Swedol customer segments, and together the companies will have a strong customer offering, “says Lars Verneholt, Partner, Litorina Capital Advisors AB.
Swedol will also raise additional equity. The Board therefore intends to convene a general meeting to decide on the implementation of a rights issue of approximately SEK 300 million. Swedol principal owner Nordstjernan (owner of 29.9 percent of the shares and 29.7 percent of the votes) and Zelda (owner of 21.5 percent of the shares and 29.7 percent of the votes) have declared their intention to subscribe for their respective shares of such issue. Declarations of intent covers a total of 51.4 percent of the issue, ie a total of about 154 million.
The deal is subject to regulatory approval and is expected to be completed in summer, 2016.