Baden-Baden, May 23, 2022: GRENKE, a global financing partner for small and medium-sized enterprises, today announced it had signed agreements to purchase the franchise companies in the USA and Singapore. The sellers are the investment companies WGW Investment Inc. and Garuna Inc., and CTP Handels- und Beteiligungs GmbH and Garuna AG, which together held 58 percent in each franchise company. The remaining 42 percent in each franchise company are held by the local management.
The total purchase price agreed to for the acquired shares in both companies amounted to approximately EUR 300,000. With these purchases, GRENKE has taken over the first two of the 16 franchise companies up for sale. The corresponding agreements were signed by the contracting parties on May 20, 2022.
These purchase agreements do not affect GRENKE’s scope of consolidation under IFRS, as all franchise companies have already been included in the consolidated financial statements under IFRS. The payment of the purchase price will directly reduce GRENKE AG's equity. Now that the agreements have been signed, the transactions are expected to close during the remainder of the second quarter of 2022.
GRENKE CEO Michael Bücker in his comments, says: "We announced that we would acquire our franchise companies by the end of the year and have now started with the companies in the USA and Singapore. This is another milestone in our effort to provide the greatest degree of transparency possible with respect to our business model."
GRENKE CFO Dr Sebastian Hirsch in his comments, added: "It was absolutely the right decision to prepare thoroughly for this transaction and to close it at this time. This was the right place to start, particularly because the USA, as the largest leasing market in the world, is enormously important for our long-term growth ambitions. We are continuing to work on acquiring the remaining franchises in order to close this chapter before the end of the year."
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