Bilia — M&A Activity 2012

Feb 6, 2012

Bilia acquires a large BMW and Volvo dealer in Norway

Bilia has concluded an agreement to acquire all shares in Stenshagen Bil Oslo AS and Stenshagen Bil Kongsvinger AS. Furthermore, long leases have been signed for the properties in Oslo and Kongsvinger, with Egil Stenshagen. The companies have a turnover of around SEK 1.0 billion and the operating profit amounted in 2011 to approximately SEK 45 million (37). During 2011, the companies delivered 940 new BMWs, 500 new Volvos, 85 new Nissans, 25 new Land Rovers and 1,050 used cars. The business, which is concentrated on Oslo, has reported strong profits in recent years. The agreements are conditional on approval by the Norwegian competition authority. It is planned to be able to take possession of the business at the end of February, with financial effect from 1 January 2012.

The companies' capital employed plus agreed surplus values amounts to approximately SEK 210 million. The purchase price will be paid with Bilia shares to a value of just over SEK 60 million, and the remaining amount in cash. Egil Stenshagen will be one of the largest owners of Bilia after the transaction and will also be a member of the board of Bilia in Norway. For a number of years, Bilia has had Volvo, BMW and Ford dealerships in Oslo and synergies have been estimated at a minimum of SEK 8 million per year with full effect from 2013.

The transaction is expected to have the following effects on the Bilia group during 2012:

• Capital employed will increase by around SEK 210 million and net borrowings by around SEK 150 million.
• The number of outstanding shares will increase by 515,000.
• Earnings per share are expected to increase by around SEK 0.4.

Bilia's CEO Per Avander comments:

"The acquisitions strengthen our business in Norway and enable substantial synergies. We will be able to restructure our business in Oslo to give us efficient stand-alone facilities for both BMW and Volvo."

Egil Stenshagen comments:

"The sale is part of the ongoing consolidation in the car trade. Bilia has good prospects to be able to develop the car business in Norway. It therefore feels like right decision for all employees and customers to sell the business to Bilia."

Gothenburg, 6 February

Bilia AB (publ)

For further information, please contact CEO Per Avander or CFO Gunnar Blomkvist, Bilia AB, tel +46 31 709 55 00 or Bilia's CEO in Norway Frode Hebnes tel +47 99 32 19 27.

The above information is disclosed in accordance with the Securities Market Act and/or the Financial Instruments Trading Act. The information was published on 6 February 2012, at 08:30.