OpCapita has agreed to invest further capital following the closing of its new equity fund. OpCapita is financing the buyout without bank debt. The added liquidity will help NKD complete its restructuring programme and deliver its growth plans.
The previous owner of NKD signed a contract of sale with the private equity partnership on Monday, 25 November 2013 after talks with several potential buyers. OpCapita was selected because it offered the best solution for the company and the employees.
The firm is a long-term investor that delivers sustainable improvements in profitability through operational change. OpCapita is to buy the retailer in its entirety, including the headquarters in Bindlach, Bavaria, and the store network including more than 1,950 stores in Germany, Austria, Italy, Slovenia, Croatia and Poland.
The goal remains to continue and to complete the current restructuring programme that has been initiated by the restructuring consultancy Ziems und Partner. The workforce reductions initiated to this end at the Bindlach location have been completed.
As part of the restructuring that has been underway during this year, the company has implemented a store closure programme which will shortly be completed.
Ziems und Partner, which has been running the retailer on an interim basis, conducted the sale process. The business plan drafted by Ziems und Partner aims to return the retailer to growth as of 2015. With operating expertise developed over many years in the retail business and an international network of partners, OpCapita will continue on this path.
John von Spreckelsen, an operating partner at OpCapita, will be appointed Senior Shareholder Representative and proactively support the efforts of NKD’s current management team to implement their growth plan and ensure a smooth transition phase.
Mr von Spreckelsen said: ‘We have followed NKD for a number of years and are pleased to acquire the business. Its loyal customers appreciate NKD’s emphasis on quality and value. With the active support of NKD’s employees, we are confident that our investment will enable the company to return to sustainable growth over the medium term.’
He added: ‘I would like to take this opportunity to thank all employees at NKD for their great work and loyalty and also thank the interim management of Ziems and Partner for their outstanding performance and cooperation.’
OpCapita, founded in 2006, are experts in operational improvement. A European private equity partnership backed by major institutional investors; it transforms businesses in the retail, consumer and leisure industries.
Over the past seven years, OpCapita has invested €400m of equity capital in acquiring businesses. It has invested in, driven operational change in and increased the profitability of every business it has acquired.
With stores in Germany, Austria, Italy, Slovenia, Croatia and Poland, the NKD Group is one of the largest companies in the clothing retail market. NKD has operated an online shop. The company has over 1,950 stores and more than 8,500 employees.
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