Ratos' Stofa acquires TV business from Canal Digital

The transaction, which was completed without a capital injection from Ratos, gives the acquired business an enterprise value of DKK 51m.

Ratos-backed Stofa previously attempted to acquire the entire Canal Digital Denmark business in January earlier this year, but backed out after estimating a low likelihood of obtaining approval from local competition authorities.

The current deal only covers the cable television business of Canal Digital Denmark. Ratos commented that the transaction value falls below the limit imposed by competition authorities and that approval should not be a problem. More add-on acquisitions are possible, but the company will focus primarily on organic growth.

Canal Digital Denmark, founded in 1997 and based in Glostrup, provides triple play (broadband, cable television, and telephony) services to the Danish market. The cable television business has about 20,000 subscribers, employs 9 staff, and recorded a DKK 83m turnover in 2010.

Stofa provides triple play services to around 350,000 Danish households. Founded in 1959, the company currently employs around 430 staff. It recorded a DKK 1.4bn turnover and DKK 117m EBITA in 2010.

Per Frankling, investment director, supported the deal on behalf of Ratos. Klaus Høeg-Hagensen is CEO of Stofa.

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• Topics
• Nordics
• Portfolio management
• Consumer
• Denmark
• Ratos Holding