Europris

M&A Activity • Jun 30, 2021

Europris acquires Lekekassen

Europris acquires Lekekassen

Strategic e-commerce acquisition of Norway's largest online toy store

Fredrikstad, 30 June 2021: Europris is acquiring 67 per cent of Lekekassen

Holding AS (Lekekassen) - Norway's largest player in online shopping for toys -

for NOK 501 million. Through this acquisition, the company will be entering a

strategically important product category which is growing rapidly online, as

well as further strengthening its expertise in e-commerce.

The agreed purchase price is final, and the acquisition will be settled in cash.

Europris has a pre-emptive right to acquire the remaining shares in Lekekassen.

Lekekassen is one of the fastest growing online retailers in Norway, with almost

10,000 products online. It achieved total revenues of NOK 545 million and EBITDA

of NOK 94 million in 2020, and both revenues and earnings have continued to grow

in 2021. Lekekassen entered the Swedish market with the ToySpace.se brand in

2019, reaching revenues of approximately NOK 100 million in 2020.

The excellent performance of the Lekekassen technology platform makes the online

toy store a highly scalable business, and Europris also sees the potential to

develop improved digital customer solutions faster and more cost-effectively on

this platform.

Espen Eldal, CEO of Europris, comments:

"We are very enthusiastic about the acquisition of Norway's largest online toy

store and its strong e-commerce organisation. Toys represent a clear growth

category for Europris, and Lekekassen's products will contribute to higher

growth and a better customer experience in our stores. In addition, we see the

opportunity for significant synergies through joint purchasing of goods and

services."

Lekekassen was established in 1945 by the Skalleberg family in Grimstad in the

Aust-Agder county. The business consisted exclusively of physical retail stores

until 2013, when the Lekekassen.no e-commerce business was established. This was

named "Newcomer of the Year" by Prisjakt.no, Norway's leading consumer product

comparison service, in its first year of operation, and has maintained its

strong position with consumers ever since.

Andreas Skalleberg, CEO of Lekekassen, comments:

"We have been proud retailers for generations, but we recently started a search

for an industrial partner who can support further development and expansion of

our family business. We have connected well with the Europris team and their

corporate culture, and we are very pleased to team up with them. We look forward

to continuing to grow our business across Scandinavia as we join forces with

Norway's largest and most successful discount variety retailer."

Lekekassen has a strong management team in place, and Andreas Skalleberg will

remain CEO and owner of 33 per cent of Lekekassen. Espen Eldal will take on the

position as chair of the board.

For additional information, see the attached investor presentation.

Europris and Lekekassen will hold a joint presentation on Wednesday 30 June at

10.00 CEST. The presentation will be held in English as a Teams meeting with

Q&A. The link to the meeting will be available on the company's website:

https://investor.europris.no/events-and-presentations/events-and-presentations/

For further inquiries, please contact:

CEO Espen Eldal, Europris, espen.eldal@europris.no, +47 48 29 24 24

CFO Stina Charlene Byre, Europris, stina.byre@europris.no, +47 41 10 58 08

About Europris:

Europris is Norway's largest discount variety retailer by sales. The group

offers its customers a broad range of quality own brands and brand-name

merchandise. Its merchandise is sold through the Europris chain, which consists

of a network of 268 stores throughout Norway. Of these, 240 are directly

operated by the group and 28 operate as franchise stores. The group's

headquarters are located in Fredrikstad, Norway.

About Lekekassen:

Lekekassen (The Toy Box) is owned by the family business Leif Skalleberg AS in

Grimstad in the Aust-Agder county and was originally founded by Leif Skalleberg.

The Skalleberg family have been merchants for almost 80 years. Andreas

Skalleberg is the third generation to manage the business, taking over from his

father Torbjørn. Lekekassen is Norway's largest toy store and one of the

country's fastest growing e-commerce players. The independent business carries

many well-known brands at low prices and is today Norway's largest retailer of

Lego. Since its online establishment in 2013, Lekekassen.no has been growing

rapidly. The group has just expanded its fulfilment centre in Grimstad (capacity

21,000 m[2]) and is planning further geographical expansion into Denmark in the

fourth quarter of 2021 (ToySpace.dk).

About the transaction:

DHT Corporate Services has been the financial adviser for Lekekassen, while

Simonsen Vogt Wiig was retained as its legal adviser.

For Europris, EY has carried out a financial due diligence, while Selmer has

conducted the legal due diligence.

The transaction is subject to approval by the Norwegian Competition Authority.

This information is considered to be inside information 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 stock exchange

release was published by Trine Engløkken, IR Manager, Europris ASA, on Wednesday

30 June 2021 at 07:30 CEST.