Hagar hf. and Lindarhvoll ehf., on behalf of the Treasury of Iceland, have signed a purchase agreement for the acquisition of all shares in Lyfja hf. The agreement was signed following negotiations regarding Hagar hf.'s bid in an open sales process. Arctica Finance acted as the advisor to the buyer.
Lyfja hf. consists of the parent company Lyfja hf. along with its subsidiaries, Heilsa ehf. and Mengi ehf. Lyfja hf. operates a total of 39 pharmacies, branches, and retail stores, as well as pharmaceutical dose packaging services, across the country under the brands Lyfja, Apótekið, and Heilsuhúsið. The total turnover of Lyfja hf. was ISK 9 billion in 2015.
The total enterprise value of Lyfja hf. at the time of the agreement is approximately ISK 6.7 billion. Hagar hf.'s valuation is based on the company's annual financial statements from recent years and actual operating figures for the first nine months of 2016.
The purchase agreement is signed subject to the results of due diligence and the approval of the Icelandic Competition Authority. Provided these conditions are met, it is expected that the transaction will be finalized before July 1, 2017.
