Uso de cookies Utilizamos cookies propias y de terceros para mejorar nuestros servicios y mostrarle publicidad relacionada con sus preferencias mediante el análisis de sus hábitos de navegación. Si continúa navegando, consideramos que acepta su uso. Puede obtener más información sobre nuestra: Política de cookies

The global fashion business journal

15 Jul 201922:53

Galeria Kaufhof and Karstadt complete joint venture deal: five billion-euro giant

The agreement between both companies, which operate over 240 stores in Germany, was signed last July and sees Signa, owner of Karstadt, turn majority shareholder with a share slightly over 50%.

11 Sep 2018 — 16:29
MDS
Share
Save

Galeria Kaufhof and Karstadt complete joint venture deal and turn into 5 billion-euro giant

 

 

Galeria Kaufhof and Karstadt turn into a single entity. Germany’s department store landscape has a single big player now, as Signa Group, owner of Karstadt, and Galeria Kaufhof’s parent company Hudson’s Bay Co. have completed a joint venture deal for both businesses.

 

The agreement, signed last July, sees Signa become majority shareholder with a 50.01% stake in HBC’s European retail operations and a 50% stake in HBC’s real estate in Germany. The Austrian company has made a 468 million dollar (419 million euro) investment.

 

Signa will also be in charge of both Kaufhof and Karstadt operations after their merge, turning into a group with 243 stores and annual sales exceeding five billion euros. Stephan Fanderl, chief executive officer of Karstadt and Signa Retail, will be at the helm of the new entity.

 

 

 

 

HBC will use the proceeds to pay down debt, which currently stands at 4.2 billion Canadian dollars. The joint venture also includes the company’s stores in other European markets, such as those of Saks Off 5th Stores, the Inno department store chain in Belgium and some Hudson Bay stores in the Netherlands, as well as Karstadt Sports.

 

HBC acquired Kaufhof in 2015 for 2.8 billion euros. Since then, the Canadian company has been trying to ramp up its expansion in Europe, though business has been struggling. While Kaufhof has been posting losses for the last few years, Karstadt returned to profitability in fiscal 2017/18.  

Advertising
Comment
Share
Participation rules

info@themds.com

 

Validation policy for comments: 

 
MDS does not perform prior verification for the publication of comments. However, to prevent anonymous comments from affecting the rights of third parties without the ability to reply, all comments require a valid email address, which won’t be visible or shared.
 
Enter your name and email address to be able to comment on this news: once you click on the link you will find within your verification email, your comment will be published.

0 comments — Be the first to comment
...