ICA Gruppen offloads Hemtex apparel business
Swedish retail giant ICA has sold all its shares in its Hemtex clothing arm to Norwegian home textiles chain Kid ASA. The deal is valued at SEK226 million (USD25.42 million) on a debt-free basis, meaning ICA loses SEK400 million (USD44.98 million) on the sale, to be recognised in Q2 earnings.
Hemtex has 141 outlets and sales of SEK1.02 billion (USD110 million) in 2018. Disposing of non-core assets will allow ICA to better focus on its core grocery business and building out new streams in areas like egrocery and pharmacy.