Vendex KBB sells six group companies to CVC

Royal Vendex KBB N.V. is planning to sell six of its Group subsidiaries to the international investment firm CVC Capital Partners. The transfer is to be carried out as a single transaction.

The six companies concerned are the Hans Anders opticians’ group, the Siebel jewellers’ group, Kijkshop, Perry Sport, Prénatal and Scapino. Together these companies operate eleven retail formulas, with over 8,000 employees, nearly 1,000 outlets and net sales of more than EUR 700 million (fiscal year 2001/02).

Today Vendex KBB and CVC have signed a Letter of Intent regarding the intended transaction. The employees of the companies involved, the trade unions and the Netherlands Social and Economic Council have been informed accordingly. CVC will, in co-operation with the current management teams, run the acquired formulas without any changes en will focus strongly on further growth. The transfer to CVC will not have any material consequences for the employees concerned. The take-over by CVC will come into effect as on 1 June 2002, subject to a positive recommendation by the Central Works Council of Vendex KBB and approval from the relevant competition authorities.

Vendex KBB will sell the six companies for a total of EUR 394 million (of which EUR 10 million in the form of a deferred payment). This works out at 7.8 times the operating result of the operations sold and 5.6 times the EBITDA. The transaction will generate a book profit of approximately EUR 145 million.

The sale of the six companies is in line with the Group strategy towards streamlining the portfolio of retail formulas, in order to generate the necessary (financial) resources for expansion of a selected number of formulas, of which most have international ambitions and have good opportunities to develop as a major European player.

The intended sale will help Vendex KBB to simplify its structure significantly in a single move. The six companies together operate eleven of the Group’s twenty-six retail chains but account for only 15% of Group sales.

(source: Vendex KBB)

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