Skeljungur hf.: Lyfsalinn ehf.'s bid for Lyfjaval ehf. accepted; with the deal, if finalised, Skeljungur hf. will acquire a 56% share in Lyfsalinn ehf.

Lyfjasalinn ehf’s bid for 100% of the shares in Lyfjaval ehf. and the Landakot real estate company ehf. was accepted today, 25 June 2021.

Skeljungur hf. currently holds 10% of the shares in Lyfsalinn ehf., but the acceptance of the offer to buy, and a concurrent increase in share capital, will bring Skeljungur's holding in Lyfsalinn ehf. to 56%, assuming completion of the acquisition.

Lyfsalinn operates three pharmacies in the metropolitan area of the capital, i.e. in Glæsibær and Urðargarður, and a drive-through outlet at the Orkan service station owned by Skeljungur on Vesturlandsvegur.

Lyfjaval also runs three pharmacies, i.e. in Mjódd, and Sudurnes and a drive-through outlet on Hæðasmári. The acquisition includes the above mentioned real-estate.

The acquisition is subject to several conditions and customary reservations, e.g. as regards due diligence and approval by the Competition Authority.

If finalised, the acquisition will be financed by means of an increase in Skeljungur’s shareholding in Lyfsalinn ehf. of 400 million ISK, bringing Skeljungur’s holding in the company to 56%, as noted above.

Lyfsalinn’s accepted bid amounts to 1,500 million ISK. The acquisition price, if the purchase takes place, will be paid by means of an increase in shareholding and a borrowing.

The hope is that the acquisition, if successful, can be finalised in the fourth quarter; at this stage, however, this is subject to the conclusions of due diligence and the approval of the Competition Authority.

It is anticipated that the operation of Lyfjaval and Lyfsalinn will positively impact Skeljungur hf.’s annual EBITDA by 250-300 million ISK.

Further information will be disclosed as matters progress.

Árni Pétur Jónsson, Skeljungur CEO:

“This acquisition is a part of our strategy of reducing our exposure to fuel sales by investing in units that are not linked to sales of fuel and advancing and expanding our service offerings to customers in the health sector. The increasing age of Iceland's population is giving rise to new challenges and opportunities, one of them being the growth in the development of pharmaceuticals and various health-related product categories. A part of our company´s strategy is to meet consumer´s needs and simplify their lives on the go and it is our belief that the locations of Orkan’s service stations are well suited for drive-through pharmacies. We can see a number of opportunities to increase access to drive-through pharmacies; it is our belief that an increase in their number will be welcomed by our customers.”

Lyfsalinn ehf. adviser is corporate advisory team from Arion Bank hf.

For further information, please contact Árni Pétur Jónsson, CEO fjarfestar@skeljungur.is

www.skeljungur.is
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