Price is below Nobia expectations
Nobia has agreed the sale of its Poggenpohl business to German group Adcuram for a below expected price tag of €10million, which is expected to be complete during the first quarter of 2017.
According to Nobia the sale will improve the group’s profitability, as during January to September 2016 Poggenpohl reported sales of SEK 749million and an operating profit of negative SEK 13million. Nobia’s EBIT margin excluding Poggenpohl amounted to 10.5% during the same period.
The transaction results in a non-cash write down of SEK460million in Q4 2016, which will be reported in the income statement under the heading Profit/loss from discounted operations. It will also include Poggenpohl’s net profit until December 31, 2016
President and CEO of Nobia Morten Falkenberg commented: “Since 2010 Nobia has executed against a strategy focusing on growth and efficiency. By taking out cost and complexity, we have significantly improved our value proposition in the mid-market segment in the countries where we do business. We have sold off companies where our market position has been weak. We now take the next step on the journey.
“Poggenpohl is a brand with strong reputation worldwide, however there have been limited synergies to the rest of the group. Nobia will continue to drive scale and profitable growth, both organic and acquired. The price is below our expectations, but nevertheless we believe this will create shareholder value over time.”
Poggenpohl was acquired by Nobia in 2000 and employs around 470 people, selling luxury kitchens through 36 own stores and a network of retailers.