Core Equity shelves Hema acquisition talks – reports

Belgium-based Core Equity backed away from the takeover talks due to its assessment that the e-commerce plans for Hema will not be profitable enough, according to Dutch daily the Financiële Telegraaf.

The report mentioned that talks were previously at an advanced stage, with Hema's owner, UK-based Lion Capital, already agreeing on a takeover price of around €1bn.

Lion Capital and Core Equity declined to comment on the news when contacted by Unquote. 

Sources told the Financiële Telegraaf that Lion Capital is already discussing a possible acquisition with other interested bidders and also considering the option of an IPO for Hema in 2019. The report added that other sources expressed doubts about new takeover talks as well as a possible IPO.

Lion acquired Hema from Maxeda in June 2007 for €1.1bn.

In 2010, the GP looked into selling the business and brought in Citigroup and RBS to run a sale process. However, Hema was taken off the block in June 2011, after talks with several potential bidders including CVC Capital Partners and BC Partners failed to generate high enough bids.

Lion Capital secured a €900m amend-and-extend for the group's debt facilities in 2013.

Amsterdam-headquartered Hema was established as a department store chain in 1926. The company operates a network of 750 stores in the Netherlands, Belgium, Luxembourg, Germany, France, the UK, Spain, Austria and the United Arab Emirates.

The company employs around 18,000 people and generated a turnover of €1.1bn in 2016.

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• Topics
• Buyouts
• Benelux
• Consumer
• Netherlands
• Lion Capital