Sale of Valora's Trade division marks completion of focus on its core Retail business

The Valora Group has completed its focus on its core Retail business. Following the sale of its Services division and acquisition of Naville in 2014, Valora is selling its Valora Trade division, which operates in the distribution business for FMCG. This restructuring was announced in spring 2015. Valora's partner in the transaction is Aurelius, a group that specializes in taking over and restructuring companies, with a track record as a long-term investor and a number of existing investments in Switzerland. The sales contract includes all companies in Switzerland, Germany, Austria, Denmark, Sweden, Norway and Finland (operating in the “Cosmetics” or “Classics” business area). Employees of Valora Trade will be transferred across to the new owner. As a result of the transaction, Alex Minder will be stepping down from the Executive Board as of 31 December 2015. Closing of the transaction is expected to take place by end of December 2015 subject to approval of anti-trust authorities.

Valora is well positioned to solidly meet the expectations it announced in spring as regards operating profit for 2015 as a whole. The company still expects to generate an operating profit (EBIT) of between CHF 45 and 50 million for the 2015 financial year. The geographical expansion of its successful Brezelkönig format into international markets is proceeding as planned, while the newly created Valora Lab, which is responsible for developing digital products and services for the Valora Group, is already offering its first online-based financial products with bob Finance AG.

In 2014, the Valora Trade division generated total net revenues of over CHF 600 million, with an operating profit of around CHF 3 million (adjusted). The business area was again faced with an extremely challenging market environment in 2015. The enterprise value of the transaction amounts to CHF 45 million and includes an earn-out component of CHF 20 million. The Trade division, which is not part of the core business, will make a net loss of around CHF 75 million in 2015, in particular due to reversals of currency conversion differences and the repayment of intercompany loans. This will impact accordingly the group profit.

CEO Michael Mueller: “We are certain that in Aurelius, we have found a strong partner, as well as a new owner that holds its subsidiaries over the long term and has relevant experience in this area. Over the next three years, Valora will continue to participate in the performance of the Trade business thanks to the earn-out component. This transaction will enable us to focus our resources exclusively on the sustainable development of Valora and concentrate growth in our core activities: Retail and immediate-consumption goods in heavily frequented locations.”