ITAB, one of Europe's leading suppliers of complete shopfitting concepts, checkouts and lighting systems, has signed an agreement to acquire La Fortezza Group, one of southern Europe's market leading players in shopfitting, with its head office in Bologna, Italy. The group also has operations in France, Spain, Portugal, Russia, Argentina, Dubai and Malaysia.
Completion is subject to customary regulatory approval and is expected to occur in the fourth quarter of the year. The purchase price for the shares is equivalent to 85 MEUR on a cash and debt free basis, with an additional purchase price of a maximum of 20 MEUR based on the company's performance until the end of 2017. ITAB anticipates funding the acquisition of La Fortezza via fully committed credit facilities at completion.
La Fortezza had sales of 138 MEUR (approximately 1,300 MSEK) in 2015 and has approximately 630 employees. La Fortezza has a similar level of operating margin as ITAB and it is estimated that the acquisition will have a positive effect of 0.65 SEK on ITAB’s annual earnings per share, before the effects of synergies. The number of shares in ITAB amounts to 102,383,430.
"The acquisition is in line with our strategy of offering a total concept for the retail trade in Europe. The acquisition further strengthens our market leading position in Europe and gives us a strong position in southern Europe. Through the acquisition, we can offer La Fortezza's customers a wider product portfolio in the form of checkouts, self-checkout systems and lighting products", says Ulf Rostedt, CEO ITAB Shop Concept AB.
La Fortezza was founded by the present owners in 1962. Today, the group has a leading position in the southern European market and has long-term relationships with several of southern Europe's large retail chains. According to its strategy, the group has expanded into new markets following its customers' expansions. La Fortezza provides production and sales, as well as project management for shopfitting concept. The group has production facilities in Italy, France, Russia and Argentina.
"We are looking forward to be a part of Europe's leading supplier of total concepts to the retail trade. It secures all of our futures and we can now offer a complete and cost effective total concept and that gives us a stronger customer offer”, says Glauco Frascaroli, Chairman and CEO La Fortezza.
The acquisition gives ITAB a broader and stronger market position in Europe with local presence in southern Europe. Through the acquisition, La Fortezza can offer customers ITAB's product portfolio of products within the check-out arena and professional lighting systems. The acquisition is expected to create synergies mainly within purchasing and production. ITAB will also gain access to La Fortezza's strong position within FMCG and DIY and can develop the concept side for the specialist retail trade in southern Europe. The ITAB group also advances its global presence, which is becoming more and more important for its larger customers. The acquisition is in line with the group's strategy and continued investment in sales of a total concept for retail trade.
The information provided is such that ITAB Shop Concept AB (publ) shall publish in accordance with the Swedish Securities Markets Act and/or the Financial Instruments Trading Act. This information was submitted for publication at 8 a.m. 8th of July 2016.
For further information, please contact:
ITAB Shop Concept AB
CEO Ulf Rostedt
Telephone: +46 36 31 73 00
IR Karin Alvudd
Telephone: +46 36 31 73 00
Mobile: +46 708-55 43 92
ITAB Shop Concept AB sells, develops, manufactures and installs complete shopfitting concepts for retail chain stores. The all-inclusive offer includes custom-made fitting concepts, checkouts, self-checkout systems and professional lighting systems. Customers include the major players throughout most parts of Europe. ITAB is the market leader at checkout to retailers in Europe, and one of Europe's largest suppliers of shopfitting concepts and lighting systems. The group has 3,000 employees and a turnover of SEK 5,193 million in 2015. ITAB B-share is listed on the Nasdaq Stockholm.