Press release -
Falck divests its Roadside Assistance business in Sweden, Norway, Finland, Estonia and Lithuania.
As part of a long-term strategy to develop into an integrated healthcare service provider, Falck has today sold its Roadside Assistance (RSA) business in Sweden, Norway, Finland, Estonia and Lithuania to Gjensidige Forsikring in Norway. The transaction does not include Falck’s RSA activities in Denmark.
After more than 70 years’ history of operating Roadside Assistance in Norway and Sweden and more than 25 years in Finland, Falck’s RSA in these markets will now change hands, as the Norwegian insurance company Gjensidige will take over the ownership, including the ownership of the Baltic RSA business. Falck is the leading provider of roadside services in Sweden, Norway, Finland, Estonia and Lithuania with nationwide franchise networks, safeguarded by strong industry know-how and agile workflows.
Falck’s Roadside Assistance covers all types of vehicles used in case of accidents or breakdowns and is available to private, public and corporate clients and covers all of Europe. Falck has more than 1,400 vehicles in its franchise network with 370 start-up locations across Sweden, Norway, Finland, Estonia and Lithuania. In 2020, Falck RSA answered 840,000 calls and performed 280,000 assistances and transports.
“Falck´s Road Assistance services are a natural supplement to our offerings in the mobility space with focus on convenience for our customers. Falck RSA is a highly competent organisation. We see significant potential in developing these services further and look forward to exploring value-enhancing opportunities for both customers in Gjensidige and Falck RSA together with the Falck RSA organisation”, says Helge Leiro Baastad, CEO of Gjensidige.
Divestment in line with Falck’s strategy
The transaction is in line with Falck’s strategy to develop into an integrated healthcare service provider. In line with this, Falck decided in 2020 to divest businesses with limited strategic fit – including the Nordic RSA business – to focus on the core business and invest in becoming an integrated healthcare service company.
“The divestment enables Falck to further invest in becoming an integrated healthcare service provider, aiming to meet healthcare needs of people throughout their lifetime. It’s a successful business unit and some very skilled employees we are divesting. It’s always sad to say goodbye to skilled, dedicated colleagues, but I am happy that we have found an ambitious owner with an appetite and strong interest to invest in the roadside business outside Denmark and thereby provide further development opportunities for our colleagues,” says Jakob Riis, CEO of Falck.
Falck’s RSA business in Denmark is not part of the transaction, as the Danish RSA business is an integral part of Falck’s core business, serving its long-standing subscriber base in Denmark with new healthcare services.
The divestment is subject to approval by the competition authorities and the Financial Supervisory Authority of Norway. Closing is expected to occur in Q1 2022.
Facts on the transaction
Falck has sold its Roadside Assistance business in Sweden, Norway, Finland, Estonia and Lithuania to Gjensidige Forsikring in Norway at a price of SEK 1.4 billion.
- · Gjensidige Forsikring in Norway is purchasing Falck Redning AS (Norway), Falck Räddningskår AB (Sweden) and Falck Oy (Finland, Estonia, and Lithuania).
- · The transaction does not include Falck’s RSA business in Denmark.
- · Falck Roadside Assistance in Sweden, Norway, Finland, Estonia and Lithuania have +260 skilled employees and experts working across call centres, commercial and road operations as well as strong back-office functions.
- · The divestment is subject to approval by the competition authorities, and thus Falck still owns the business in a transition period.
For more than a century, Falck has worked with local and national governments to prevent accidents, diseases and emergency situations, to rescue and assist people in emergencies quickly and competently and to rehabilitate people after illness or injury. This has made Falck an international leader in emergency response and healthcare services.
Falck operates in 29 countries and has approximately 24,000 employees.