December 23, 2016 / 6:09 AM / 9 months ago

BRIEF-ICA to acquire lithuanian grocery chain for EUR 213 mln

Dec 23 (Reuters) - ICA Gruppen Ab

* ICA Gruppen to acquire the Lithuanian grocery retail chain IKI

* Says signed an agreement to acquire UAB Palink, which operates the grocery retail business IKI, for a consideration of 213 million euro on a cash and debt free basis

* UAB Palink is acquired for 213 million euro on a cash and debt free basis, corresponding to an EBITDA-multiple of approximately 6.1 times and an EBIT-multiple of approximately 11.6 times for the twelve months ending in September 2016

* Says IKI is the second largest player in the Lithuanian grocery retail market with a market share of approximately 15 per cent during 2015 and a nationwide store network of approximately 230 stores

* IKI had net sales of 630 million euro, an EBITDA of 35 million euro and an EBIT of 18 million euro during the twelve months ending in September 2016

* The transaction is expected to generate yearly cost synergies of approximately 15 million euro when fully realized in 2020

* Says acquisition is expected to lead to one-off costs of approximately 40 million euro and related investments amounting to approximately 25 million euro during 2017-2019

* Transaction will be financed using a combination of ICA Gruppen’s available cash and existing credit facilities

* Completion is subject to competition authority approval, which is expected to be received no later than the fourth quarter 2017 Source text for Eikon: Further company coverage: (Reporting by Stockholm Newsroom)

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