Acquisition of all the shares in Klettur – sala og þjónusta ehf. and Klettagarðar 8-10 ehf.

Skeljungur ehf., a wholly owned subsidiary of SKEL fjárfestingafélag hf., has on behalf of a holding company, entered into a purchase agreement on the acquisition of all the shares in the company Klettur – sala og þjónusta ehf.

Concurrently, SKEL fjárfestingafélag hf. has agreed to acquire all the shares in Klettagarðar 8-10 ehf., a company that owns and operates the premises that house Klettur’s business operation.

Klettur – sala og þjónusta ehf.
Klettur is a leading service company and the agent for Scania, Caterpillar and Goodyear in Iceland, in addition to operating service stations. The company runs tyre service stations under the brand of Klettur and owns the trademark Sólning. The turnover of the company in 2022 is projected to be in the range of 8,200 million ISK with EBITDA around 405 million ISK.

Knútur Grétar Hauksson, the current CEO and the largest shareholder of Klettur, has accepted to assume the duties of Chairman of the Board. Agreements have been reached with key employees of acquiring a 4% stake in the holding company. Kristján Már Atlason will assume the role of CEO of Klettur.

The enterprise value of Klettur according to the purchase agreement is 2,300 million ISK. The value will be adjusted based on the position of net interest-bearing debt and total current assets on the reference date of the settlement of the transaction.

The acquisition is financed in part by a 600-700 million ISK increase in Skeljungur ehf.’s share capital. SKEL fjárfestingafélag hf. will contribute those funds. In other respects the acquisition is financed by means of new and current debt.

Klettagarðar 8-10 ehf.
Klettagarðar owns the real estate located at Klettagarðar 8-10 in Reykjavik Suðurhraun 2 in Garðabær and Hjalteyrargata 8 in Akureyri. The estimated annual rental income from these properties is 147 million ISK.

The enterprise value of Klettagarðar according to the purchase agreement is 1,500 million ISK. The value will be adjusted based on the position of net interest-bearing debt on the reference date of the settlement of the transaction. The acquisition is fully financed by means of a cash payment and a takeover of current debt.

Spokesmen:
Þórður Guðjónsson, CEO of Skeljungur: “With the acquisition of Klettur we will be significantly strengthening the Group’s range of products and services. Klettur will be operated as an independent company. The acquisition is in line with the Company’s strategy of building an even stronger company to better service the needs of the Icelandic business community. It is our belief that the acquisition will enable the Group to expand into new markets and play an active role in the development of Icelandic infrastructure in the coming years. If the transaction is finalised it is estimated that Skeljungur’s turnover in 2023, including Klettur, will be in the range of about 70 billion ISK, and the combined estimates of both companies project EBITDA in the range of 1300-1500 million.”

Knútur G. Hauksson, CEO of Klettur: “In recent years, together with our excellent staff and reliable suppliers, we have built a leading sales and service company. We believe that the vision presented to us by Skeljungur fits well with our strategy and values that will further strengthen the company going forward. We are fully confident that this a very positive step forward not only for Klettur, our employees and suppliers, but also for our loyal customers, who can continue to rely on premium quality products and services.“

Condition precedent:
The above transactions are subject to customary conditions, including acceptance by Klettur’s principal suppliers and the approval of the Competition Authority. Information will be provided if and when the conditions of the transaction have been met.

For further information, please contact Þórður Guðjónsson, CEO of Skeljungur, (thordur@skeljungur.is).