Altia and Arcus to merge to form a leading wine and spirits brand house
OSLO: The Boards of Directors of Altia Plc and Arcus ASA have entered into a combination agreement to form a leading Nordic wine and spirits brand house. The new combined company will be named Anora Group Plc, a news release said.
Anora will offer a unique portfolio of iconic local, regional, and global brands. The Combined Company’s preliminary aggregated annual revenue is EUR 640 million in 2019 and Anora employs approximately 1,100 professionals around the Nordics and Baltics.
Anora will have a strong foothold in the Nordic markets making it an attractive partner with its superior pan-Nordic route-to-market. With a solid combined cash-flow, Anora is well positioned for stronger international expansion.
The merger will form a wine and spirits brand house with leading presence across the Nordics with a relevant market presence also in the Baltics. The combined Company will have a unique portfolio of iconic local, regional and global wine and spirits brands. This, combined with deep consumer insights and strong innovation capabilities will enable the combined company to achieve growth and meet changing consumer needs even better.
Anora will offer a one -stop shop for customers both in on- and off-trade. Further, its wide distribution presence in the complex Nordic markets and enhanced sales excellence, will make the Combined Company an even more attractive partner.
The transaction will allow the combined company to strive for growth and more powerful product launches both in and outside the Nordics. Anora’s attractive brand portfolio has significant export potential. With a strong combined cash flow, the combined company will be a competitive Northern European player able to seek further growth also through targeted M&A.
The merger provides a step-change in scale with expected efficiencies throughout the value chain. It will allow the Combined Company to improve its cost position and seek for additional efficiency gains long term.
The transaction will also form more competitive Industrial and Logistics business units through increased internal volumes. The combination targets EBITDA net synergies of around EUR 8-10 million annually, to be achieved through cost synergies in sourcing, manufacturing, logistics and SG&A as well as revenue synergies from home markets and beyond. The companies expect that most of the synergies will be achieved within approximately two years from completion of the merger. The combination is also expected to create long-term positive effects that will continue to materialise even after this period.
Sanna Suvanto-Harsaae, Chairman of the Board of Altia, comments: “We are very happy to announce the merger of Altia and Arcus, and that the new company, Anora Group, will be headquartered in Helsinki, Finland. This combination of two equal Nordic companies is a logical continuation on Altia’s strategic journey that started with the initial public offering in 2018. Together, these two innovative companies are taking an important step to become the Nordic wine and spirits brand house with excellent potential for growth also outside the Nordics.”
Michael Holm Johansen, Chairman of the Board of Arcus, comments: “Arcus and Altia have a strong Nordic position based on long heritage, iconic brands and unique understanding of the Nordic consumer. This merger will create significant value for shareholders in both companies, and the Combined Company will financially be in an even stronger position to pursue growth beyond its core Nordic business. It will be an attractive company for customers, partners and be able to employ the best talent.”
Pekka Tennilä, CEO of Altia, comments: “Through added scale and more efficient production, we can further strengthen our leading sustainability position. Joining forces will provide significant growth potential in exports and create better possibilities to bring our iconic brands and sustainable Nordic drinks experiences to new markets. I also believe the combination will improve our image as an attractive employer in the Nordics and offer even better development opportunities for our professionals in a Nordic inclusive working culture.”
“The new company will be a strong and visible Nordic entity. Together we will provide better opportunities for our international agencies and partners, to the benefit of our customers”, says Kenneth Hamnes, the CEO of Arcus.
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