Gjensidige Forsikring ASA

M&A Activity • Dec 3, 2021

Gjensidige acquires Falck's roadside assistance

Gjensidige acquires Falck's roadside assistance

Gjensidige Forsikring ASA has on 3 December 2021 agreed to acquire 100 per cent

of the shares in Falck Räddningskår AB, including subsidiaries in Norway,

Finland, Estonia and Lithuania (Falck RSA Nordic & Baltics) from Falck

Investment Sverige AB (a subsidiary under Falck A/S), for SEK 1.4 billion on a

debt and cash free basis. Falck RSA Nordic and Baltics is a leading roadside

assistance provider with nationwide franchise networks in Sweden, Norway,

Finland, Estonia and Lithuania. The acquisition is in line with Gjensidige's

strategy to take a holistic approach to solving the customers' needs and

complements Gjensidige's products and services in the Nordic mobility space.

Closing is expected to take place in Q1 2022, subject to customary regulatory

approvals. This will reduce the solvency margin of Gjensidige Forsikring Group,

according to the approved Partial Internal Model, by approximately 12 percentage

points, based on the figures as at 30 September 2021.

Falck RSA Nordic & Baltics offers roadside assistance and call centre services

including emergency repairs, tire replacements, battery and bulb changes,

battery booster as well as general towing services. Falck RSA has an extensive

network of ~370 start-up locations in Sweden, Norway, Finland, Estonia and

Lithuania. The group manages 1400+ franchise vehicles and owns ~60 vehicles. The

group has ~260 employees and recorded EUR 75.8 million in revenues and EUR 6

million in EBITA in 2020. Falck RSA Nordic and Baltics will continue as a

separate entity, and in a transitory period under the current brand.

"Our key priority over the next years is to maintain and further

strengthen our direct customer relationship and become an even better and more

relevant partner for our customers. Falck RSA Nordic and Baltics' road

assistance services is a very good strategic fit for us and provides a natural

complement to our offerings in the mobility space, with focus on convenience for

our customers. Falck RSA Nordic and Baltics is a highly competent organisation

and will be further developed under our ownership, to the benefit of all of

Falck's customers. We see significant potential in developing these services

further and look forward to exploring value enhancing opportunities for both

customers in Gjensidige and Falck RSA together with the Falck RSA Nordic and

Baltics organisation", says CEO in Gjensidige, Helge Leiro Baastad.

"I am happy, that we have found an ambitious owner, with an appetite and strong

interest to invest in the roadside business outside Denmark and thereby provide

further development opportunities for our colleagues. It's a successful business

unit and some very skilled employees we are divesting", says Jakob Riis, CEO of

Falck Group.

This release contains inside information related to Gjensidige Forsikring ASA

pursuant to the EU Market Abuse Regulation and is subject to the disclosure

requirements pursuant to Section 5-12 the Norwegian Securities Trading Act.

This release contains alternative performance measures (APMs). APMs are

described at www.gjensidige.no/reporting in a document named APMs Gjensidige

Forsikring Group Q3 2021.

This release is issued by Mitra H. Negård, Head of Investor Relations at

Gjensidige Forsikring ASA.

Date and time of publication: 10:00 CET, 03.12.2021