Nobia divests ewe to focus on core markets

Swedish kitchen furniture group Nobia has divested its Austrian ewe business to focus on its core UK and Nordic markets.

19 Feb, 24

Swedish kitchen group Nobia has divested its Austrian ewe business to focus on its core UK and Nordic markets and strengthen its financial position.

Nobia invests SEK2billion in Swedish factory

Nobia has already divested its Bribus business in the Netherlands and now entered an agreement to sell its ewe kitchen business to a buyer conglomerate for €24million.

Led by Austrian investors ILAG (Industrieliegenschaftenverwaltung) and FMMS (Franz Mayr-Meinhof Saurau Holding, the conglomerate also includes the management team.

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The sale includes ewe’s net cash at the time of completion, which was €2.4million as of September 30, 2023.

In addition, there are two earn-out payments of up to €2.5million in total, conditional upon ewe’s performance in 2024 and 2025.

Ewe reported sales of €62million and an operating profit of €5million on a rolling 12 month basis as of September 2023.

The transaction is expected to be completed during March 2024 and is subject to regulatory approvals, which will result in a negative SEK -40million.

It is primarily related to goodwill and will be recorded as “discontinued operations” in Nobia’s interim report for the first quarter of 2024.

President and CEO of Nobia Jon Sintorn stated: “Following the sale and leaseback of the Jönköping factory property and the divestments of Bribus and ewe, we are committed to focusing on our core markets and to further strengthen our position.”

Nobia announced a UK restructure, as part of a cost reduction programme, last year.

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