Orkla buys two Swedish ecommerce websites for $43M, strengthens its digital commerce operations.
Orkla, an Oslo, Norway supplier of branded consumer goods and concept solutions to the grocery, out-of-home and bakery markets, announced getting into an agreement to purchase the Swedish company Health and Sports Nutrition Group HSNG AB (HSNG).
The transaction was made with Qliro Group, the owners of HSNG. HSNG runs the eCommerce portals Gymgrossisten and Bodystore, and is the biggest online health and sport nutrition company in the Nordic region.
Through the Gymgrossisten and Bodystore eCommerce portals, HSNG offers dietary supplements, health and well-being products, activewear, equipment and accessories to a broad customer base in the Nordic region. Its sales portfolio includes proprietary brands and products distributed on behalf of third parties. The websites purchased receive 24 million visits per year.
HSNG is based in Stockholm, Sweden, has around 170 employees and has a 12,700 sq.m. logistics centre in Trollhättan. A total of 60% of the company’s turnover is generated in Sweden, and the rest chiefly in Finland, Norway and Denmark.
The transaction was made for approximately $43M, a price considerably lower than yoy net sales of SEK 772.8M ($91M) and about 9x EBITDA of SEK 38.4M ($4.53M). This probably is justified by Orkla taking over (some of) the long term debt and/or payables of HSNG, as ecommerce companies usually need credit to roll over its inventory.