Bilia — M&A Activity 2016

May 9, 2016

Press release

Bilia acquires a BMW and MINI dealer in Belgium

Bilia has concluded an agreement to acquire Philippe Emond, a BMW and MINI dealer in Belgium, located near the border to Luxembourg. The planned date of possession is 1 July 2016. Philippe Emond has an annual turnover of around SEK 730 M, and has during the past two years reported an average operating profit of SEK 24 M. Philippe Emond sells approximately 1,600 new and 950 used cars per year and has about 105 employees. The operation is run from two dealerships that are owned by the company and border on Luxembourg. The purchase price is about SEK 240 M, of which SEK 60 M will be paid in cash and the remaining SEK 180 M in the form of newly issued shares in Bilia Holding. Bilia Holding will own 100 per cent of the shares in the newly acquired BMW and MINI operation in Luxembourg and 100 per cent of the shares in Philippe Emond. After the deal, Bilia AB will own about 66 per cent of the shares in Bilia Holding and the seller of Philippe Emond will own about 34 per cent. The Bilia Group's net debt will increase by about SEK 100 M as an effect of the deal. The agreement includes an option for Bilia to purchase the seller's shares in Bilia Holding after a five-year period. Bilia's presence around Luxembourg will increase as a result of the deal, which is also expected to result in synergies of about SEK 6 M per year.

Per Avander, Bilia's Managing Director and CEO, comments:

"We are very happy to have created the biggest BMW and MINI dealer in Belux (Belgium and Luxembourg) and a good platform for growth in the region. We are convinced that Bilia's expertise, along with that of the seller Philippe Emond, will make it possible to further develop the business to the benefit of both customers and employees".

Philippe Emond, owner of the eponymous company Philippe Emond, comments: "After having developed two well-functioning dealerships in Belgium, I have found in Bilia a partner that is interested in growing in the region. Furthermore, I am happy to be able make use of my knowledge to further develop the business in Luxembourg".

Gothenburg, 9 May 2016

Bilia AB (publ)

For further information, please contact Per Avander, Managing Director and CEO, or Gunnar Blomkvist, CFO, Bilia AB, tel. +46 31 709 55 00.

The above information is disclosed in accordance with the Securities Market Act and/or the Financial Instruments Trading Act. The information was published on 9 May 2016, at 08:30.

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Bilia AB Box 9003 SE-400 91 Göteborg www.bilia.com

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