1. News
August 30, 2018

Matas to buy digital retailer Firtal Group for $20.37m

Danish drug store chain Matas has entered an agreement to acquire digital retailer Firtal Group, for an enterprise value of DKK130m ($20.37m).

Danish drug store chain Matas has entered an agreement to acquire digital retailer Firtal Group, for an enterprise value of DKK130m ($20.37m).

Firtal Group owns and operates Helsebixen.dk, as well as a portfolio of e-commerce sites and brands in the health and wellbeing domain.

Of the total enterprise value, $17.23m will be offered in cash and the remaining will be settled in shares. The deal also includes an additional earn-out component of up to $3.13m.

According to the company, transaction and restructuring costs related to the deal are estimated to be below DKK10m ($1.56m) in 2018-19.

The transaction is subject to the approval of Danish antitrust and is scheduled to complete in the fourth quarter of this year.

Following the completion of the transaction, Matas estimates that its total online revenue will almost double from the previous year.

“We expect Firtal Group revenues to grow at double-digit rates throughout the strategy period and contribute to our long-term ambition.”

Matas CEO Gregers Wedell-Wedellsborg said: “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 $627.04m as a result of the acquisition.”

The deal will also enable Matas to expand its presence in the green and natural products market, which focuses on vitamins, food supplements and natural beauty products.