Company announcement no. 5 2018/19 – Inside Information
Allerød, 29 August 2018
Matas signs agreement to acquire Firtal Group ApS, the owner of among others Helsebixen.dk
Today, Matas signed an agreement to acquire Firtal Group ApS, the owner of Helsebixen.dk and a portfolio of ecommerce sites and brands in the Health & Wellbeing category. CEO Gregers Wedell-Wedellsborg says:
“Right from our very first conversation with Firtal Group’s founders, we shared a vision to create a new kind of power player within the health and wellbeing space: A network of born-digital brands serving sharply defined target groups. Together, Firtal Group and Matas can make that vision come true faster and with greater impact than each of us on our own.”
Transaction overview
“We consider Firtal Group an attractive investment case on a standalone basis and we are impressed by the founders’ track record, digital retail skill-set and ambition. In addition, we have identified a number of ways to accelerate Firtal’s growth plans and improve profitability. As a result, we expect Firtal Group revenues to grow at double-digit rates throughout the strategy period and contribute to our long term ambition of an EBITDA margin in excess of 14% no later than the financial year of 2022/23. Revenue ambitions for 2022/23 are increased to around DKK 4 bn as a result of the acquisition” says CEO Gregers Wedell-Wedellsborg.
“The acquisition has a clear strategic fit with the newly announced growth strategy ‘A Renewed Matas’. With Helsebixen.dk in particular, we improve our offering for the growing number of health-conscious consumers and gain share in the green market, as we have already set out to do. With Firtal Group overall, we expect to almost double our online market share and make a step change in our capacity to deliver our ambition of becoming the online market leader in health and wellbeing.”
Strategic rationale
With the acquisition of especially Helsebixen.dk and Firtal Group’s other online platforms, Matas will make progress on several important strategic targets:
In addition, the acquisition entails:
About Firtal Group ApS
Firtal Group is a leading digital retailer within sales and distribution of own branded products and third-party branded products. Firtal operates primarily within selected niche e-commerce verticals.
Firtal Group has developed a culture embracing entrepreneurship and innovation, where in-house development of talented employees allows them to become champions within digital retailing. Firtal Group’s headquarter is located in Lystrup north of Aarhus. Following the acquisition, Firtal Group will continue to be operated as a separate company and remain in Lystrup.
Firtal Group ApS operates 9 different niche webshops. The key webshop is Helsebixen.dk, a well-known Danish player within the online market for wellbeing.
Total revenue for Firtal Group ApS amounted to DKK 91 million for 2017 with an EBITDA margin of 10%. Firtal Group employs approximately 45 full-time employees. 2018 revenues are expected to be in excess of DKK 140 million with an EBITDA margin of more than 11%. Turnover for the first half of 2018 is in line with forecast.
Financial targets
Matas 2018/19 financial targets for the Group are unchanged except for 1: the specification that the EBITDA margin is before special items, and 2: the addition of a target for total investments:
Transaction and restructuring costs related to the transaction are expected to be less than DKK 10 million and will be treated as special items.
Despite the acquisition, Matas A/S still expects to be able to pay a dividend for the financial year 2018/19.
Financial ambitions
The financial ambitions towards 2022/23 are unchanged except for total revenue, which has been increased from DKK 3.7 to 3.9 billion to around DKK 4 billion in 2022/23:
Our financial ambitions are based on existing IFRS rules, including the effects of IFRS 15, and do not factor in the effects of IFRS 16.
Except for ‘Matas Natur’ and now also the acquisition of Firtal Group ApS, the effects of new growth initiatives have not been factored into the revised financial ambitions for the strategy period.
Conference call
Matas will host a conference call for investors and analysts on Wednesday, 29 August 2018 at 11:30 a.m.
The conference call and presentation can be accessed on our investor website: www.investor.en.matas.dk.
Conference call access numbers for investors and analysts:
DK +45 35 15 81 21
UK: +44 (0) 330 336 9411
US: +1 323 794 2423
Conference code: 3781808
Link to webcast: https://edge.media-server.com/m6/p/4zfaczd4
Contacts
Gregers Wedell-Wedellsborg
CEO, tel +45 48 16 55 55
Anders T. Skole-Sørensen
CFO, tel +45 48 16 55 55
Elisabeth Toftmann Klintholm
Head of Investor Relations & Corp. Affairs, tel +45 48 16 55 48
Forward-looking statements This announcement contains statements relating to the future, including statements regarding the Matas Group's future operating results, financial position, business strategy and future targets. Such statements are based on management’s reasonable expectations and forecasts at the time of this announcement. Forward-looking statements are subject to risks and uncertainties and a number of other factors, many of which are beyond the Matas Group's control. This may have the effect that actual results may differ significantly from the expectations expressed in this announcement. Without being exhaustive, such factors include general economic and commercial factors, including market and competitive conditions, supplier issues and financial and regulatory issues.
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