Company announcement no. 05, 2023/24 (inside information)
Allerød,
Matas Group (“Matas”) has today signed an agreement with
Compelling strategic rationale
The Nordic market for beauty and wellbeing is estimated to be around
Through the combination,
KICKS and Skincity will remain as individual banners and will continue to have a head office in
United,
The combined group has pro forma adj. 2022/23 total revenue of
In addition, both companies’ proven track records of digital transformation will enable accelerated digitalization, with online shopping continuing to grow faster than the overall market. Combined,
Key transaction details
- Matas will acquire 100% of the shares in
KICKS Group for a cash consideration at closing ofSEK 1,100 million (DKK 698 million )3. - Enterprise value of
SEK 2,063 million (DKK 1,336 million ) including estimated assumed net debt ofSEK 13 million (DKK 8 million ) and estimated lease liabilities ofSEK 951 million (DKK 630 million ) as of31 March 2023 4. - KICKS Group’s pro forma adj. EBITDA in 2022/23 was
DKK 305 million , incl.DKK 176 million adjustment from IFRS 16 reclassification. Pro forma adj. EBIT in 2022/23 wasDKK 62 million 2. - Stand-alone EBITDA improvement in
KICKS Group of DKK ~40 million3 expected from ongoing integration of Skincity and supply chain transformation project centred around a new automated warehouse in Rosersberg,Sweden . - Transaction multiples of 4.7x pro forma adj. 2022/23 EBITDA and 22.9x pro forma adj. EBIT on a standalone basis.
- Transaction multiples of 4.1x pro forma adj. 2022/23 EBITDA and 15.1x pro forma adj. EBIT incl. improvements from Skincity integration and supply chain transformation.
- Transaction will be fully debt financed within the existing gearing target of less than 3.0x based on consolidated pro forma adj. EBITDA with estimated closing date in Q3 of the calendar year 2023.
- Minimum
DKK 100 million 3 in EBITDA improvement from synergies once fully phased in by 2025/26, related to increased operating leverage, customer loyalty, similarities and overlaps in business models, services and marketing strategies, as well as IT and digitalization agendas, expected to be fully achieved within three years after closing. - Estimated integration costs of approx.
DKK 100 million 3, with the majority in the first financial year. - Expected positive EPS percentage accretion by 2024/25, and double-digit percentage accretion by 2025/26.
- The transaction is expected to close in Q3 of the calendar year 2023 and is not subject to any regulatory approvals as relevant turnover thresholds are not met due to e.g. limited geographical overlap.
Financial guidance for 2023/2024 for the existing business, as provided in Matas’ Annual Report 2022/23 on
About KICKS Group
KICKS offers a full-service concept with makeup, fragrances, professional skincare and haircare in
Skincity is an online skincare clinic in
In 2022/23,
Skincity integration and Supply Chain Transformation (SCT) project
In the autumn of 2022, Axel Johnson decided to integrate Skincity, which until then was operated as a separate entity within Axel Johnson, into
Furthermore,
When fully implemented from 2024/25, the combined EBITDA impact of the ongoing integration of Skincity and the SCT project is expected to amount to DKK ~40 million3 uplift on a standalone basis compared to the 2022/23 pro forma adj. EBITDA of the
Advisors
Conference call
Matas will host a conference call for investors and analysts on
Video conference access numbers for investors and analysts:
DK: +45 78768490
US: +1 646-787-0157
PIN: 915912
Please call five minutes before the conference call begins.
Contacts
CEO, phone +45 48 16 55 55
Per Johannesen-Madsen
CFO, phone + 45 48 16 55 55
Klaus Fridorf
Head of Communication, phone +45 61 20 19 97
About Matas
With revenues at
Notes
1) Based on an agreed fixed equity value of
2) Based on a SEK/DKK exchange rate of 0.6888 (average of
3) DKK figures based on a SEK/DKK exchange rate of 0.6343 (as of
4) DKK figures based on a SEK/DKK exchange rate of 0.6630 (as of
Forward-looking statements
This announcement contains statements relating to the future, including, but not limited to, statements and expectations regarding Matas’ future financial result, business strategy and future targets. The words “may”, “will”, “should”, “expect”, “anticipate”, “believe”, “estimate”, “plan”, “predict”, “intend” or variations of these words, as well as other statements regarding matters that are not historical fact or statements regarding future events or prospects, constitute forward-looking statements. Forward-looking statements are based on Matas’ reasonable expectations and forecasts at the time of this announcement. Forward-looking statements are subject to risks and uncertainties and a number of other factors, many of which are beyond Matas’ control. This may have the effect that actual results may differ significantly from the expectations expressed in the announcement. Without being exhaustive, such factors include general economic and commercial factors, including market and competitive conditions, supplier issues and financial and regulatory issues. Although Matas believes that the estimates and projections reflected in the forward-looking statements are reasonable, they may prove materially incorrect, and actual results may materially differ.
Matas undertakes no obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except to the extent required by law.
Attachment
- 05.0_Acquisition_KICKS_Group_29062023
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