Clayton Dubilier & Rice to acquire French retailer But

The group announced it had granted exclusivity to the investment fund, partnered with Austrian furniture retailer XXXL Lutz, following up from a binding offer for the purchase of 100% of the capital.

According to information published on its website, XXXL Lutz has €3.9bn in revenues, 20,800 employees and 236 stores under management.

Financial details of the transaction have not been disclosed at this stage, but French website Capital Finance estimates the deal value around €525m, representing a 6x EBITDA multiple, based on the €90m EBITDA posted in 2015.

The group has expanded significantly in recent times, with 12 new stores opened last year. The company reportedly enjoys a 13.1% market share in the sector, behind international sector giants Ikea and Conforama.

A senior debt package has been provided jointly by Goldman Sachs, Bank of America Merrill Lynch, BNP Paribas, Barclays, ING and Royal Bank of Canada.

Previous funding
In 2008, Decomeubles, a holding backed by a consortium composed of Colony Capital, Goldman Sachs and OpCapita (known as Merchant Equity Partners at the time), acquired But from Kesa Electricals for €550m. The deal saw Goldman Sachs and Colony Capital each acquire 48% of the capital. The remaining 4% was held by OpCapita and the management. The deal comprised 70% of senior and mezzanine debt.

Company
But is a French brand of retail stores specialised in home goods, such as furniture, large and small appliances, and consumer electronics. The But brand was created in 1972 by André Venturini in Le Havre, France. He rapidly expanded his network so that by 1982, there were 140 But stores. In 2015, the group had 280 outlets.

The company is headquartered in Emerainville and employs around 6,500 people. But posted €2bn of revenus in 2015 – up by 9.4% from the previous year.

People
OpCapita – Henry Jackson (managing partner).
Colony Capital – Sébastien Bazin (CEO); Jean-Romain L'Homme (principal).
Goldman Sachs – Tom Bauwens (managing director).

Adviser
Equity – Lazard, Nicolas Constant, Jean-Philippe Bescond, Bertrand Moulet (M&A); Clifford Chance, Fabrice Cohen, Marianne Pezant (legal).
Vendor – Goldman Sachs, Céline Méchain, Edouard Panié (M&A); Rothschild & Cie, Frank Cygler (M&A); Bredin Prat (legal).

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• Topics
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