Sweden-based home improvement discount chain Byggmax has acquired Nordic-based online retailer Skånska Byggvaror for SEK741m ($85.8m) on a cash and debt free basis.

The deal also entails a possibility for Skånska Byggvaror shareholders to get an additional payment of SEK 110m ($12.7m), in case the EBDITA in 2016 crosses SEK 67m ($7.76m) at an maximum pay-out at an EBITDA of SEK 79m ($9.15m) or above.

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Skånska Byggvaror operates in the do-it-yourself segment of refined building material. It operates in Sweden and Norway offering an assortment of building’s interior and exteriors such as windows, doors, storage and conservatories.

Byggmax Group CEO Magnus Agervald said:"We are impressed by Skånska Byggvaror’s ability to grow turnover over time, while the company has been profitable. We see significant synergies between the companies, mainly that we can benefit from each other’s assortments to increase sales.

"Skånska Byggvaror’s conservatories, which they assemble and sell under their own brand, is their largest category. Conservatories have positioned Skånska Byggvaror as a strong brand that combines good quality with low prices. The market for conservatories is expected to have good growth in the foreseeable future."

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Skånska Byggvaror CEO Anders Johansson Eickhoff said: "Together with Byggmax we get an opportunity to extend our offer and at the same time increase our sales through Byggmax strong Nordic platform. We know that our customers purchase building material when they finalize their DYI-projects and we are happy to be able to provide this in the future directly to our customers. We look forward to continue our growth journey and develop our strong brand together with Byggmax."

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The additional payment depends on Skånska Byggvaror’s financial performance in 2016 and the transaction is subject to approval from Competition Authority. The deal is expected to be closed in the fourth quarter of 2015.

Byggmax expects its earnings per share to be positively impacted because of this deal. The acquisition is financed through increased debt.

Regarding the deal, Byggmax has been advised by Danske Bank, Lindahl and EY. For Skånska Byggvaror and Polaris Private Equity, Carnegie and Mannheimer Swartling are acting as the legal advisers.