FREDRIKSTAD, NORWAY: Europris is acquiring 67 per cent of Strikkemekka Holding AS for NOK 88.4 million. The purchase price is final, and the acquisition will be settled in cash, a bourse filing noted.

The main revenue contributor in the Strikkemekka group is the Strikkemekka.no online store. This was launched in 2017 and quickly became Norway’s second largest online store in its category, offering an extensive portfolio of both private label and branded yarn, yarn accessories and patterns developed in-house for popular knitting products.

It achieved total revenues of NOK 153 million in 2021, and revenue development for the year to 31 May 2022 has been positive.

Designhandel.no, an online store for kitchenware and smaller home interior products, was launched in Norway in the summer of 2019 and in Sweden in November 2020. It achieved total revenues of NOK 27 million in 2021.

Through this acquisition, Europris will strengthen its position online and continue to develop its e-commerce expertise, in addition to achieving synergies.

Espen Eldal, CEO of Europris, comments: “We’re pleased to announce the acquisition of Strikkemekka, which adds to our portfolio of purely online players. Strikkemekka is a well-run company, with an ambitious and inspiring founder who we’re excited to get onboard.

The knitting category is a good match with our existing business, and we see a potential for synergies through both joint purchasing of goods and services and the development of e-commerce solutions. While we sell yarn as a product, Strikkemekka offers customers a different experience by providing them with both inspiring patterns and the corresponding yarn needed to create these designs.”

Eirik Fuglestad, founder and CEO of Strikkemekka, comments: “We’re looking forward to joining the Europris family. We find its culture, the way it works and its move towards investing in category winners in different segments online incredibly exciting. We feel certain that this is the right partner for us in a long-term perspective, and are looking forward to continuing the journey we have started on together and to creating further growth both in Norway and abroad.”

Fuglestad will remain CEO of Strikkemekka and continue to own of 33 per cent of the company. Europris has a pre-emptive right to acquire the remaining shares.

The Strikkemekka group is in a process of restructuring, with Motehus.no – a platform which sold fashion clothing for NOK 8 million in 2021 – to be discontinued. Sales from the Strikkemekka and Designhandel online stores were NOK 180 million in 2021, with EBITDA for the business to be continued of NOK 16.5 million.

Europris is Norway’s largest discount variety retailer by sales.