Nobia has entered into an agreement to divest its UK operations to funds managed by Alteri Partners LLP. The transaction includes all Nobia UK legal entities, covering the Magnet, Gower, Commodore and CIE brands, according to Nobia AB.
The sale follows weak profitability in the UK and is driven by the company’s strategy to focus on markets with stronger margins and operational synergies. Nobia cites challenging UK market conditions after Brexit and the COVID-19 pandemic, which increased investment needs in its store network. Concentrating on the Nordic markets allows the Group to leverage its new automated Nobia Park facility in Sweden for greater efficiency and profitability. The factory, opened in October 2025, replaces the Tidaholm plant and integrates part of the Danish supply chain, while the Nastola factory in Finland has been closed. Nobia Park increases automation and efficiency for products sold primarily in Sweden and Norway.
Region UK reported net sales of SEK 4,363m and an operating loss of SEK 108m for the twelve months ending 30 September 2025. At the time of closing, no purchase price will be paid. The buyer will assume obligations related to the leased retail network amounting to SEK 746m under IFRS 16. Nobia will retain the UK defined benefit pension plan, valued at a net asset of SEK 80m.
Nobia stated that challenging UK market conditions following Brexit and the COVID-19 pandemic required significant investment in its store network, leading to structurally weaker profitability compared with its Nordic business. The company’s strategy now centres on higher-margin Nordic operations and leveraging its new automated manufacturing base.
Assets and liabilities related to the UK operations will be reclassified as held for sale in Nobia’s 2025 year-end report, resulting in a non-cash impairment of approximately SEK 750m. The transaction is expected to be completed during the first half of 2026, subject to regulatory approvals.
The fourth quarter of 2025 will include items affecting comparability of about SEK 100m, mainly linked to the divestment and restructuring initiatives. These initiatives are expected to generate annual cost savings of SEK 80m from the third quarter of 2026.
Nobia excluding the UK generated net sales of SEK 5,626m and EBIT of SEK 311m in the twelve months ending 30 September 2025, corresponding to a 5.5% EBIT margin. Between 2015 and 2025, the EBIT margin excluding the UK peaked at 12.6% in 2017 and declined to 5.5% in the latest period, based on Nobia’s proforma financials.
Separately, Nobia’s Board of Directors has resolved to carry out a fully guaranteed rights issue of approximately SEK 1,500m with preferential rights for existing shareholders. The rights issue is intended to reduce debt, improve financial flexibility and strengthen the company’s capital structure.
Nobia has also entered into a commitment letter with its lenders for an amendment and extension of SEK 3,450m in revolving credit facilities. The package includes SEK 2,500m in revolving facilities and a SEK 1,500m bridge term facility, which will be repaid with proceeds from the rights issue. The revolving facilities will have a three-year tenor.
The revised credit agreement includes updated financial covenants covering net debt to adjusted EBITDA, adjusted EBITDA to net interest expense and maximum capital expenditure, all excluding IFRS 16. Nobia will be required to reduce the revolving facilities to SEK 2,000m within 18 months.
The rights issue is conditional on approval at an extraordinary general meeting scheduled for 18 February 2026. If approved, the record date will be 20 February 2026, and the subscription period will run from 24 February to 11 March 2026.
Nobia’s largest shareholders, Nordstjernan Aktiebolag, If Skadeförsäkring AB and the Fourth Swedish National Pension Fund, representing 45.46% of capital and votes, have undertaken to subscribe for their pro rata shares. Nordstjernan and If Skadeförsäkring have also guaranteed the remaining portion of the rights issue, for which they will receive a cash fee of 2% of the guaranteed amount.
Nobia’s extraordinary general meeting will also vote on amendments to the company’s articles of association to adjust limits on share capital and total shares.
