Bubbleroom has made a decision. The e-commerce company is now selling its warehouse facility, meaning the physical equipment, such as warehousing systems and fixtures. The buyer is Hökerum Square Auto 4 AB. Simultaneously, the lease agreement for the property where the company has its warehouse and office is being transferred to logistics company Logent AB.
However, Bubbleroom will not disappear entirely from the address. Instead, the company will transition to renting a portion of the space for its warehouse and office inside the same building.
This change is happening in parallel with the e-retailer expanding its logistics collaboration with Logent AB.
Multi-Million Deal to Lower Costs
The purchase price for the warehouse facility is 48.4 million Swedish krona on a debt-free basis. For Bubbleroom, the sale represents a net cash flow and a net capital injection of 32 million Swedish krona. The aim of selling the facility and transferring the agreement is to create a more flexible and cost-effective logistics solution with lower fixed costs in the future.
Based on the company's current cost structure, the deal is expected to have an annual positive impact on operating profit of 4 to 7 million Swedish krona from 2027 onwards. In addition, the transaction is expected to result in a positive one-time earnings effect of 15 million Swedish krona.
The entire transfer is planned to take place during this quarter.
Focus on Core Business
The change is presented as part of the e-retailer's ongoing work to optimize its capital tie-up and costs. The deal creates improved conditions for flexibility in logistics flows and allows the company to focus more on its core business.
Magnus Månsson, CEO of New Bubbleroom Sweden AB, comments:
The transaction is a clear step in streamlining our working capital and strengthening our balance sheet while simultaneously increasing flexibility in operational activities. By further strengthening our cost base and releasing capital, we create more room for profitable growth and expanded opportunities to accelerate the positive momentum we established in Q1. I am therefore confident that we are now strengthening Bubbleroom both in the short and long term.