Swedish retailer ICA Gruppen has completed the sale of its fully owned food retail business, Rimi Baltic, to the Salling Group in a Skr14.4bn ($1.39bn) deal.
ICA Gruppen’s strategic focus remains on its Swedish operations, which encompass food retail, pharmacy, banking, insurance and real estate ventures.
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The divestiture will provide capital that ICA Gruppen plans to re-invest into its Swedish operations to enhance and diversifying customer offerings within its primary market.
ICA Gruppen CEO Nina Jönsson stated: “We are proud of Rimi Baltic’s strong performance and our shared history over 28 years, and we are now divesting a strong and healthy business.”
Operating in Estonia, Latvia and Lithuania, Rimi Baltic employs 11,000 people and operates a network of 314 stores. The sale also encompasses real estate assets located in these countries.
For the year ended 31 December 2024, Rimi Baltic generated Skr21.87bn ($2.11bn) in net sales and an operating profit, excluding certain adjustments and leasing effects under IFRS 16 [a standard specifying how a reporter will recognise, measure, present and disclose leases], amounting to Skr849m.
The business also carries a debt load of Skr5.5bn, largely attributed to lease liabilities under IFRS 16.
The completion of this deal will result in a capital gain of nearly Skr7bn for ICA Gruppen and a cash inflow around Skr9bn.
Jönsson added: “I am particularly proud of the Baltic organisation, which over the years has been able to adapt its business to a changing environment while always being able to emerge as a winner. It’s also good to know that Rimi Baltic will be able to continue its journey with a new owner that has the ambition to grow internationally. Accordingly, this transaction benefits ICA Gruppen as well as Rimi Baltic, its customers and its employees.”
Following the transaction, Rimi Baltic was classified as a discontinued operation in ICA Gruppen’s records from 2 March 2025.
JP Morgan provided financial advice while Gernandt & Danielsson offered legal counsel during the transaction process.
