Embracer Group will be divided into three companies: Asmodee Group, Coffee Stain and Middle-earth Enterprises

The restructuring of Embracer Group has an epilogue that deals with the transformation of the company into three independent entities that will be listed on the stock exchange: Asmodee Group, Coffee Stain & Friends and Middle-earth Enterprises & Friends. The conglomerate hopes that this separation will allow each of the companies to “better focus on their respective strategies and offer equity stories more differentiated to new and current shareholders.”

The activity to which the three companies into which Embracer Group is divided will be dedicated are:

• Asmodee Group: board game publisher and distributor with its own network of 23 in-house studios and a catalog of over 300 intellectual properties. It has 2,450 employees.
• Coffee Stain & Friends: gaming-focused entity indie and A/AA premium, as well as the titles free-to-play for PC, console and mobile with a high level of recurring income. Control over 200 properties such as Deep Rock Galactic, Goat Simulator, Satisfactory, Wreckfest, Teardown and Valheim. It has 3,150 employees.
• Middle-earth Enterprises & Friends: company dedicated to the development and publication of AAA games for PC and console. It is the home of teams such as Crystal Dynamics, Warhorse Studios, 4A Games and Eidos-Montréal. Among the properties it controls we have Dead Island, Killing Floor, Kingdom Come Deliverance, The Lord of the Rings, Metro and Tomb Raider. It has 4,550 employees.

Shares in Asmodee Group and Coffee Stain & Friends will be distributed as a dividend to Embracer Group shareholders and will be listed on Nasdaq Stockholm, while Middle-earth Enterprises & Friends will remain within the listed company Embracer Group, which will change its name. The plan is that the spin-off of Asmodee Group takes place within a period of 12 months and that of Coffee Stain & Friends takes place during the year 2025. As part of the process, Embracer Group has signed a financing agreement through Asmodee Group of 900 million euros to pay debt and reduce leverage.

Before each division, the entire capital structure will be reviewed so that Asmodee Group and Coffee Stain & Friends have the best possible foundation in their new adventure as independent and listed companies. Lars Wingefors, the largest shareholder of Embracer Group who controls about 20% of the capital and 40% of the votes, will maintain his position and intends to shape a new ownership structure. For now he already has the endorsement of the shareholders who represent more than 50% of the capital and votes.