Lion sells Hema

Oscar Geen
19 October 2018

Tweet
Facebook
LinkedIn
Google plus
Send to

Lion Capital has sold Dutch retail chain Hema to Ramphastos Investments, the holding company of entrepreneur Marcel Boekhoorn.

The business said it will focus on international expansion and debt reduction under the guidance of its new owners.

The sale ends a holding period of just over eight years for Lion Capital, which first considered an exit in 2010 and has come close to selling the business on two separate occasions since then, according to Unquote sister publication Mergermarket.

Most recently, Core Equity terminated its proposed takeover of the business in June. The investor backed away from the takeover talks due to its assessment that the e-commerce plans for Hema would not be profitable enough, according to Dutch daily Financiële Telegraaf. The offer was thought to value the business at around €1bn.

The Dutch daily subsequently reported that Hema was trying to renegotiate its contracts with franchisees to take a larger part of online profits.

Ramphastos announced simultaneously with its acquisition of the group that new arrangements have been made with the association of affiliated companies (Hema franchisees).

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

The GP first looked into selling the business in 2010, and brought in Citigroup and RBS to run a 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.

The business was again put up for sale in 2017 with Gilde Buy Out Partners and Alpinvest putting together a joint bid, according to Mergermarket, before the aborted Core Equity deal earlier this year.

Company
Hema is a Dutch-headquartered retail chain with 700 branches in nine countries. It was founded in 1926 in Amsterdam. It sells a range of products including apparel, home, personal care and food products. It generated sales of €1.24bn in 2017 and employs approximately 19,000 people.

People
Ramphastos Investments – Marcel Moekhoorn (owner).
Hema – Tjeerd Jegen (CEO).