Zur Rose Group hands over successful Swiss business to Migros to focus on growth in Germany - Seite 2

Transaction secures strategy and strengthens balance sheet of the Zur Rose Group
As the future owner of the Zur Rose Switzerland business, the Migros subsidiary Medbase is taking over all operational units in Switzerland (excluding land and properties) with all employees. The Zur Rose Group will receive proceeds of around CHF 360 million from the transaction, of which approximately CHF 15 million are from the sale of IP rights to Zur Rose Suisse AG. The Group secures the implementation of its strategy and significantly strengthens its capital structure. The equity ratio increases to 73 per cent. The proceeds will leave the company largely net debt-free. The transaction is expected to close in the second quarter of 2023, subject to approval by the competition authority.

Maximum development potential for Swiss business
Since its foundation, the Zur Rose Group has been driving efficiency improvements and digitalisation in the healthcare sector. It thus plays an important role in curbing the rising costs in the healthcare sector. In both Switzerland and Germany, it has initiated connected and integrated partnerships with cost-conscious service providers and has thus developed into a leading provider of digital platform solutions. The integration of Zur Rose Switzerland into Migros as a long-standing partner will unlock large development potential.

Walter Hess, CEO of the Zur Rose Group, says: “With a clear focus on our B2C core business we will put patients and customers even more at the centre. In addition, this transaction will further strengthen our excellent position for the upcoming e-prescription rollout in Germany. At the same time, Migros is the ideal future owner for all our employees in Switzerland, under which Zur Rose can continue to develop successfully.”

Financial details of the transaction
The proceeds from the sale of approximately CHF 360 million in cash comprise a first tranche upon completion of the transaction, expected in the second quarter of 2023, and an earn-out of CHF 47 million based on the achievement of Zur Rose Switzerland’s 2023 EBITDA target, payable in the second quarter of 2024.

Zur Rose Switzerland achieved revenue of CHF 687 million in 2022 with an EBITDA margin of around 3 per cent.

Outlook
The earnings expectations for 2022 communicated on 19 January 2023 remain unchanged. The new financial targets will be announced on 23 March 2023 on the occasion of the publication of the 2022 annual results.