SPAR Group sells Swiss operations to Tannenwald for CHF 46.5m

The SPAR Group Limited announced the disposal of its entire shareholding in SPAR Holding AG ("SPAR Switzerland") to Tannenwald Holding AG for a total equity value of CHF 46.5 million. Additionally, SPAR is entitled to potential earn-out payments of up to CHF 30 million, contingent on SPAR Switzerland's EBITDA for FY26 and FY27. This transaction, effective September 8, 2025, is expected to strengthen SPAR's balance sheet through debt reduction and remove all international cross-border guarantees.

The deal includes a cash outflow of CHF 31 million for SPAR, which covers CHF 11.5 million reserved for the settlement of a Swiss Competition Commission (COMCO) fine. SPAR has opted not to appeal this fine, aligning with its strategy to exit Switzerland cleanly. The buyer will settle the COMCO liability using the funds provided by SPAR.

This divestment follows a strategic review of SPAR's European assets, aiming to future-proof the business and optimize returns. The group had initially acquired a 60% stake in SPAR Switzerland in April 2016 for CHF 44.5 million, later acquiring the remaining 40% in March 2021 for CHF 56.3 million. The transaction is not subject to shareholder approval.