Festi hf.: Festi's acquisition of the entire share capital of Lyfja hf. completed – change to Festi's executive management
July 10 2024 - 11:37AM
UK Regulatory
Festi hf.: Festi's acquisition of the entire share capital of Lyfja
hf. completed – change to Festi's executive management
Today, payment of the purchase price for the
entire share capital of Lyfja hf. to the seller was completed and
the company has thereby become part of the Festi Group. As
previously announced, Festi signed an agreement for the acquisition
of the entire share capital of Lyfja hf. on July 13, 2023. On June
14, 2024, Festi and the Icelandic Competition Authority reached a
settlement regarding the purchase, which was the final contingency
for the acquisition of Lyfja. The reference closing date for the
acquisition is July 1, 2024, and Lyfja will therefore be included
in Festi's consolidated financial statements as of that date.
The purchase price for the acquisition amounted
to ISK. 7,116 million, based on the company's preliminary financial
statements, which is divided into a cash payment in the amount of
ISK 5,076 million and the delivery of 10 million shares in Festi
with a market value of ISK 2,040 million based on the closing price
of 204 on Nasdaq Iceland on July 10, 2024, respectively. The final
purchase price could change slightly when Lyfja's final results for
the first six months of 2024 are known, which is expected to be
before the end of July.
Today, Festi took out a new loan for the
acquisition, which will increase the Group's leverage by ISK 4,000
million. Further details about the transaction and its financing
will be provided in connection with the publication of the
Company's 2nd quarter results on July 31.
Concurrently with today's completion of the
acquisition, Hildur Þórisdóttir, acting CEO and managing director
of Lyfja's human resources department, has joined Festi's executive
management.
Ásta S. Fjeldsted, CEO of Festi:
"This is a major moment and an important
milestone on Festi's journey. The finalisation of the merger has
taken some time, but this has been a learning process that lays a
solid foundation for future cooperation within the Group. There are
very exciting times ahead and a number of opportunities for
cooperation, synergy, increased efficiency and growth across the
companies within the Group, which represent some of the strongest
brands in Iceland in their respective markets. Lyfja possesses
highly trained and well-educated staff who have built one of the
largest drug store chains in Iceland. Aided by a united,
experienced and talented team of employees, we will provide
consumers and businesses in Iceland with a wide but targeted
selection of essential products at the best prices. App and online
sales, along with our well-located service centers and stores
throughout Iceland, will play a key role in this effort. At the
same time, emphasis will be placed on promoting improved public
health in Iceland through quality products, education, consultancy
and other health services as opportunities arise. These are all
things that that are going to be more and more important, with the
increase in the population and rising life
expectancy."
Hildur Þórisdóttir, acting CEO and managing
director of Lyfja's human resources department:
"Lyfja has been on an extensive journey with the
goal of extending and increasing the quality of life of Icelanders.
We do this through innovation, education and preventive solutions
as well as by providing professional pharmaceutical advice
throughout the country. At Lyfja, we are very excited about the
future and look forward to further improving our services to our
customers with a strong and forward-looking focus.”
For more information, please contact Ásta S. Fjeldsted, CEO of
Festi – asta@festi.is
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