The agreed consideration is SEK 68 million of which SEK 61.5 million shall be paid at completion with the remainder being paid in two equal instalments in June 2014 and December 2014, respectively. The transaction is expected to close on 27 May 2014 and affect the second quarter result positively by approximately SEK 35 million.
As part of the transaction, Rum21 transfers all assets, agreements, employees as well as related liabilities forming Rum21's business. Rum21 AB is part of CDON Group’s Home & Garden segment and reported total net sales of approximately SEK 90 million and an operating result of approximately SEK -1.5 million in 2013. CDON Group holds 90.1 per cent of the shares in Rum21 AB.
Rum21 AB is an online retailer of interior design and designer furniture founded in 2006 and acquired by CDON Group in 2011. Today Rum21 operates the Nordic internet stores Rum21.se, Room21.no, Room21.dk and Room21.fi.
Paul Fischbein, President and CEO of CDON Group commented: “Rum21 was acquired by the Group three year ago and has since grown considerably and established itself as a leading online store for interior design and designer furniture in the Nordics. We are now about to hand over the baton to the new owner Royal Design. Rum21 and Royal Design are two stores that complement each other well and together they are stronger and better equipped to continue to develop the exciting online interior decorating market. For CDON Group the divestment increases the focus on the Group's major holdings, which is in line with the Group's strategy.”
The information in this announcement is that which CDON Group AB is required to disclose under the Swedish Financial Instruments Trading Act and/or the Securities Markets Act. This information was released for publication at 14:00 CET on 22 May 2014.