Will Hema struggle to get sold? | RetailDetail

Will Hema struggle to get sold?

Will Hema struggle to get sold?
Foto: Shutterstock

Dutch department store chain Hema, on sale since September, is not attracting much attention, because interested parties feel it is overpriced. Previous attempts to sell the company have also failed. 


Two candidates to second round

In September 2017, owner Lion Capital put Hema up for sale for the third time, after two failed attempts in 2011 and 2014. It is also a rather bothersome process this time around, according to the Financieele Dagblad’s insider information.

Apparently, there are still two interested parties: British Clayton Dubilier & Rice and a group of Dutch investment groups (Gilde and Alpinvest) headed to the second round at the start of the year, according to the business paper. The asking price, allegedly between 1 and 1.3 billion euro, is too high for the potential buyers.

Hema already invests a lot in further expansion, particularly abroad, with a new international store formula and smaller stores in convenience locations like airports and train stations. In the past year, the retailer invested 12 million euro in the Benelux alone in that regard.


Question about its potential

Nevertheless, there are questions about Hema’s potential, after it had suffered losses for years. It did manage to generate a profit in the third quarter of 2017. The department store chain still has a lot of debt, which is because Lion Capital funded its Hema purchase with expensive loans, according to FD. Hema apparently only has a limited amount of real estate.

Increase competition is also a major issue: Hema is increasingly stuck between popular non-food discount chains (from the bottom of the market) and luxury department store chains (at the top end of the market). That does not even include online competition.

Questions or comments? Please feel free to contact the editors

Gerelateerde items

Action owner wants to sell stake


Action’s owner, investment firm 3i, aims to sell a part of the discount store chain next year. The Brits would want to sell a 35 % stake in the firm.

Belgian fund close to HEMA acquisition


Belgian Core Equity holding is allegedly close to acquiring Dutch chain HEMA: a verbal agreement is apparently in place, all that is required are the signatures.

Walmart, not Amazon, will acquire Indian market leader Flipkart


Despite Amazon’s attractive offer, Indian online retailer Flipkart has chosen for Walmart and (remarkably), Google owner Alphabet as the new owners of 75 % of Flipkart’s shares. The deal is said to be worth 15 billion dollar.

Alibaba's growth exceeds expectations


Chinese retail group Alibaba has published better-than-expected quarterly results: turnover went through the roof, but its profit is under pressure because of increased investments.

Amazon looking to outbid Walmart in Flipkart deal


The battle for dominance on the Indian e-commerce market seems to be stepping up a notch: Amazon may be looking to buy a majority stake in Flipkart, trying to better Walmart which already started negociations with the Indian online retailer.

Shareholders ‘not amused’ by Unilever CEO's wage increase


One in three British Unilever shareholders voted against the company’s proposed remuneration plan. Investors in the Dutch part of the (currently) British-Dutch company will vote on the plan as well.