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SPAR Group Exits Non-Core Swiss Operations to Focus on Core Markets
ByAinvest
Tuesday, Sep 9, 2025 1:35 pm ET1min read
The SPAR Group Ltd has disposed of its interests in Switzerland, a non-core investment that no longer aligns with its strategy. The company plans to focus on its balance sheet strength, debt and guarantees to Switzerland are eliminated. This will allow for sharper capital allocation and resources to focus on proven markets in Southern Africa and Ireland. The exit was structured as a complete exit with no lingering liabilities and SPAR will retain some upside through an earn-out mechanism.
The SPAR Group Ltd has announced the disposal of its interests in Switzerland, marking a strategic shift in its business strategy. This move signifies a significant step towards resetting the company's operations and aligning with its core markets.During a conference call, Angelo Swartz, Group CEO and Executive Director, explained that the decision to exit Switzerland was driven by the need to focus on non-core value-destructive investments. The disposal of SPAR Switzerland is part of a broader strategy to enhance the company's balance sheet strength [1].
The transaction, which was structured as a clean exit, involved the elimination of debt and guarantees to Switzerland, thereby improving the company's financial position. This move also allows for sharper capital allocation, enabling SPAR to focus its resources on proven markets such as Southern Africa and Ireland [1].
The exit was completed with no lingering liabilities, and SPAR will retain some upside through an earn-out mechanism. This ensures that the company can continue to benefit from the Swiss operations while avoiding any potential long-term financial risks associated with the market and regulatory context [1].
It is important to note that the divestment from Switzerland does not indicate a retreat from international opportunities. Instead, it reflects a disciplined approach to strategic diversification and geographic expansion. SPAR remains committed to exploring new markets but will prioritize those that align with its core business model [1].
As of the end of September 2023, SPAR operated through a network of 4,579 outlets, including 363 in Switzerland. The company's net sales were distributed across South Africa (62%), Ireland (25.5%), Switzerland (10.5%), and Poland (2%). The disposal of the Swiss unit allows SPAR to concentrate its efforts on its most profitable markets [2].
In conclusion, the disposal of SPAR's interests in Switzerland is a strategic move aimed at enhancing the company's balance sheet strength and focusing its resources on proven markets. This disciplined approach aligns with SPAR's commitment to strategic diversification and geographic expansion.
References:
[1] https://seekingalpha.com/article/4820855-the-spar-group-ltd-special-call
[2] https://www.marketscreener.com/news/south-africa-s-spar-sells-swiss-unit-stake-for-58-7-million-ce7d59dfdb8df226
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