StrongPoint

M&A Activity • Jun 28, 2021

StrongPoint increases its focus on grocery retail and divests Labels business

StrongPoint increases its focus on grocery retail and divests Labels business

28.6.2021 09:29:09 CEST | StrongPoint | Additional regulated information

required to be disclosed under the laws of a member state

(Rælingen, Norway, June 28, 2021) StrongPoint ASA ("StrongPoint", OSE: STRO) has

today entered into a definite agreement to divest its labels business (as per

segment reporting) ("Labels business") to Volati Tryck Holding AB ("Volati"), a

Swedish industrial group. The transaction includes the Swedish company

StrongPoint Labels AB and the Norwegian Labels operations which is currently a

part of StrongPoint AS and will be divested into a new entity that will be

delivered to Volati.

The sale of the business is another step towards achieving StrongPoint's 2025

growth strategy to focus on retail technology. The completion of the transaction

is subject to some closing activities and is expected to occur in two steps

during Q3 2021.

"Through this strategic sale we continue to streamline our portfolio and double

down on focusing on retail technology. This follows from our recent divestment

of StrongPoint's Cash Security business in December 2020 and brings us a step

closer in achieving our strategic ambitions and 2025 targets," said Jacob

Tveraabak, CEO of StrongPoint.

"We are pleased to have the opportunity to acquire StrongPoint's Labels

business, which is one of the label industry's best companies. The acquisition

fits in well with Volati's labels business unit Ettiketto's growth strategy and

strengthens us as a comprehensive supplier of label solutions," said Nicklas

Margård, Head of Business Area Industry.

"The Labels business has done a tremendous job in producing consistently high

year-on-year profit levels and that we had so much interest in the business is a

testament to their outstanding financial performance and reputation for customer

service. Under the Volati umbrella we believe the Labels business has better

opportunities to thrive in a fast-expanding company that is taking a bigger

position in the labels industry," added Tveraabak.

The Norwegian Labels business is currently in the process of being de-merged

from StrongPoint AS. The de-merger is expected to be completed in August 2021

and the de-merged entity to be named StrongPoint Labels AS.

The completion of the sale of StrongPoint Labels AB will take place on or about

July 1, 2021.The completion of the sale of the StrongPoint Labels AS will take

place around September 1st, 2021 when the demerger has been finalized. Upon the

delivery of both StrongPoint Labels AB and StrongPoint Labels AS has been

finalised during Q3, the sale of the Labels business will generate an accounting

net gain of approximately 165 MNOK.

The purchase price is final and agreed on the basis of the Labels accounts per

May 31st, 2021 for the Swedish operations and the end of August (estimated) for

the Norwegian business. The Labels business segment will no longer be part of

StrongPoint's financial reporting and will be reported as discontinued operation

from and including the second quarter 2021.

The Labels business has 75 employees located in Sweden and Norway and had a

revenue of 185 MNOK in 2020 and EBITDA of 30 MNOK (25 MNOK excluding IFRS 16

effects).

DISCLOSURE REGULATION

This information is subject to the disclosure requirements pursuant to Section

5-12 the Norwegian Securities Trading Act.

CONTACTS

* Hilde Horn Gilen, CFO StrongPoint ASA, +47 920 60 158,

hilde.gilen@strongpoint.com

* Jacob Tveraabak, CEO StrongPoint ASA, +47 908 21 370,

jacob.tveraabak@strongpoint.com

ABOUT STRONGPOINT

StrongPoint is a retail technology company that provides solutions to make shops

smarter, shopping experiences better and online grocery shopping more efficient.

With over 450 employees in Norway, Sweden, the Baltics and Spain and together

with a wide partner network, StrongPoint supports businesses in more than 20

countries. StrongPoint provides cash management and payment solutions,

electronic shelf and adhesive labels, click & collect temperature-controlled

grocery lockers, self-checkouts, and in-store and warehouse grocery picking

solutions. StrongPoint is headquartered in Norway and is listed on the Oslo

Stock Exchange with a revenue of 1,1bn NOK [ticker: STRO].

ATTACHMENTS

Download announcement as PDF.pdf -

https://kommunikasjon.ntb.no/ir-files/17847450/668/872/Download%20announcement%2

0as%20PDF.pdf