Björgólfur Thor Björgólfsson is Iceland's only billionaire, a title he officially earned in 2005. Known for his extravagant lifestyle, he celebrated his 40th birthday in 2007 by chartering a 767 to Jamaica, inviting 120 friends, and hiring famous performers like Ziggy Marley and 50 Cent for the occasion. Within just a decade, he had built an empire that spanned continents, from Bulgaria to the United States. However, the global financial crisis of 2008 dealt him a devastating blow, wiping out most of his wealth. Despite the hardships, Thor has risen again to reclaim his billionaire status, a story both inspiring and cautionary.
On March 19, 1967, Thor was born in Reykjavik, Iceland, into a family with a rich heritage in business and politics. His great-grandfather, Thor Jensen, was a Danish-born entrepreneur who played a pivotal role in introducing capitalism to Iceland in the early 20th century. His family's history is marked by significant achievements and notable setbacks; his grandfather also faced bankruptcy twice. The complexity of his family background, including his mother's controversial marriages, adds layers to Thor's narrative.
Young Thor Björgólfsson aspired to clear his father's tarnished reputation while carving out his own legacy. He pursued higher education at the University of California San Diego and New York University before moving to Russia in the 1990s. There, he established a successful soft drink and beer business during the tumultuous collapse of the Soviet Union, leading to rumors of mafia connections—a claim he has always denied. In 2002, he sold his Russian business to Heineken for a staggering $100 million.
Biography
| Detail | Information |
|---|---|
| Name | Björgólfur Thor Björgólfsson |
| Date of Birth | March 19, 1967 |
| Nationality | Icelandic |
| Notable Achievements | First billionaire from Iceland, significant investments in beer and pharmaceuticals |
| Family Background | Legacy of entrepreneurs and politicians; connections to various controversial figures |
Key Life Events
Returning to Iceland after his successful venture in Russia, Thor partnered with his father to acquire a 46% stake in Landsbanki, one of Iceland's leading banks. While they utilized part of the proceeds from the Heineken sale, they also leveraged additional loans, showcasing Thor's tendency to embrace debt. In 2007, he orchestrated a $6.5 billion leveraged buyout of Actavis, a generic drug company, at the peak of the financial bubble.
However, the ensuing financial crisis turned his empire into a house of cards. As the crisis unfolded, Deutsche Bank pressed Thor for more cash, leading him to borrow $230 million from his own bank. This pivotal moment marked the beginning of a tumultuous period for Thor as Iceland's economy spiraled downward, ultimately resulting in the government seizing Landsbanki and declaring the nation nearly bankrupt.
Being blamed for the catastrophic economic fallout, Thor found himself in a precarious situation. His companies racked up $10 billion in debts, with Thor personally guaranteeing $1 billion. Once a billionaire with a net worth of $3.5 billion, he faced a stark reality of financial ruin.
Resurgence from Ruin
Thor's journey to recover from this financial disaster is as fascinating as his rise to wealth. Four years after the crisis, he managed to regain his billionaire status, primarily through the restructuring of Actavis. Despite facing significant challenges, including recalls and lawsuits, he strategically navigated the situation with the help of banks that recognized their own stakes in the company.
Determined not to follow in the footsteps of his predecessors who faced bankruptcy, Thor worked diligently to restore his reputation and finances. In 2010, he gathered a team of experts to devise a plan to restructure his debts, agreeing to halt any new borrowing until he could pay off what he owed. This effort included significant sacrifices, such as selling personal assets and agreeing to give creditors a share of future dividends.
In 2012, Thor's fortunes took a turn for the better when Watson Pharmaceuticals acquired Actavis for nearly $6 billion. This sale allowed him to settle his debts and regain his footing in the business world. By mid-2014, he had successfully repaid all his obligations and today boasts a net worth of $2.2 billion, marking a remarkable comeback.
