Swedish retail group ICA AB has announced that it has agreed the sale of its ICA MENY subsidiary to Nordic Capital.

ICA Meny, which supplies restaurants, the foodservice sector and convenience stores, operates in both Sweden and Norway.

ICA said that the sale would result in a capital gain for ICA AB of approximately SEK360m (US$49m). However, the deal remains subject to approval from the European Commission.

Nordic Capital said it was excited about the opportunity to acquire ICA Meny and to work with the management team to further develop and expand the business. As a stand-alone company, ICA Meny has the opportunity to further strengthen its market position in a fragmented industry and to achieve continued growth by improving its service offering, Nordic Capital partner, Peter Hansson, said.

ICA said the sell-off would allow it to focus on its core activities in retail.