Deutsche Woolworth GmbH & Co OHG (Germany) - Dec 2007

Argyll Partners acquired German retail chain Deutsche Woolworth GmbH & Co OHG from majority shareholder Electra Private Equity for an undisclosed amount. Argyll Partners reportedly saw an interesting restructuring opportunity and the chance to breathe new life into the brand. In a separate transaction, Cerberus Capital Management LP bought and will lease back around 100 Woolworth properties. This real estate transaction has helped facilitate a financial structure for the planned turnaround of Woolworth.

Debt

There was no debt involved in the transaction.

Company

Woolworth was founded in 1879 in Lancaster. In 1927, a first outlet was founded in Germany. In 1995, Woolworth expanded into Austria. Deutsche Woolworth employs more than 12,000 staff and has 337 outlets in Germany and Austria. The retail chain made a €30m loss in 2005. The pre-tax turnover in 2006 was €917.8m.

Exit Deal

The deal originated by Electra Private Equity putting the retail chain up for sale. Electra Private Equity, then Electra Fleming, acquired Deutsche Woolworth in October 1998. The deal involved the acquisition for a DM950m consideration of Deutsche Woolworth from its ultimate US owner, Venator Group. Total funding, including elements of working capital and transaction costs, ran around DM1.05bn (October 1998, pages 14-15).

People

Robert Brech is Deutsche Woolworth’s managing director

Sourced from: Deutsche unquote" 94 (Jan 2008)

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• Topics
• DACH
• Buyouts
• Consumer
• Secondary buyout
• Germany