Divestment of majority stake in Arc E-commerce AB to Bygghemma Group AB
Carnegie has advised the owner of Arc E-commerce in the sale of the company to Bygghemma Group AB. Bygghemma has acquired 51 percent of the shares in Arc, with an option to acquire the remaining 49 percent after three years.
Arc is an online retailer of home and garden products such as hot tubs, green houses, grills and treadmills that are marketed to consumers through Outl1.se. Arc markets products under its own private brands (Lyfco, Metalcraft and Trekkrunner), and operates an efficient model where all goods are sourced directly from factories, predominantly in Asia, and shipped to consumers from Arc’s warehouse outside of Stockholm. Arc’s products are often bulky items for which home delivery with trucks is the most viable option.
In 2018, Arc generated sales and EBIT of SEK 110m and SEK 9m, respectively. Sales growth amounted to 43 percent in 2018, and has averaged 67 percent over the past five years.
The transaction will provide Arc with a partner supporting its development of the current concept as well as to grow internationally and provides several cross-selling synergies, using the various online store fronts of Bygghemma.
Signing and closing of the transaction took place on July 25.
Carnegie acted as sole financial adviser to Arc in the sale to Bygghemma