Estonia, Investments, Legislation, Markets and Companies, Mergers and take-overs

Askembla Growth Fund has since early spring been conducting a structured process aimed at selling its holdings in various companies in the Baltic countries.

The final shareholder structure in MyInvest will be established over the coming couple of months when all the non-Askembla owners in the respective companies also will become shareholders in MyInvest. MyInvest will not have a single controlling shareholder, but rather a diversified shareholder structure which includes current shareholders in Bauhof and MyFitness, management team members and advisors to the transaction. The largest shareholder is Nemor Invest. The majority of MyInvest is owned by Estonians. Through MyInvest the shareholders have ensured that the two companies can continue developing their market leadership in Estonia.

“It is with great pleasure that Nemor Invest OÜ as well as our Scandinavian investor partners in Bauhof are able to continue owning this fine company that provides DIY products to most Estonians and that we have had the opportunity to acquire another consumer services provider MyFitness a company that gives a lot of quality of life to many active Estonians,” said Indrek Prants Chairman of the Supervisory Board of MyInvest Estonia.

”The transaction underlines the faith of Estonian entrepreneurs in the positive outlook of Estonian business. The acquisition of two successful companies with well-known brands is an ambitious move and SEB highly values its involvement in the financing of this deal. We believe in the business plan of Bauhof and MyFitness and believe that with strong owners and management they remain successful as the market leaders of respective sectors,” said Martti Talgre, Head of Corporate Clients Department at SEB Estonia.

Bauhof Group AS achieved sales of MEUR 98 in 2012. In Estonia Bauhof is the market leader within DIY with its 12 well positioned shops and about 400 dedicated employees. Bauhof Estonia achieved sales of MEUR 75 in 2012 and expects to open 2-3 shops within short and additional 6 shops in mid-term. In Lithuania Bauhof has five shops and plan to open additionally 4 shops in Vilnius and Kaunas. In 2012 close to 200 motivated employees generated sales of MEUR 23 in Lithuania.

MyFitness AS is the leading fitness service provider in Estonia with 8 clubs and more than 11 000 active members who in 2012 visited MyFitness more than 560 000 times. The latest new opening was a second club in Tartu – Tartu Central. In August

MyFitness expects to open its fourth club in Tallinn – Tallinn Lasnamäe; and in Autumn 2013 its fifth club in Tallinn Solaris Shopping Center. MyFitness has with the help of its energetic employees been able to grow with an average of 31% per year since 2009.

The buyers were advised by the law firm RASK and the sellers were advised by Redgate Capital and the law firm Tark Grunte Sutkiene.