Breuninger sale process gains momentum

The German department store group Breuninger is moving forward with plans to sell its retail business and property assets.

The German department store group Breuninger is moving forward with plans to sell its retail business and property assets. Experts estimate that a full divestiture could reach up to €2.5 billion.

Interest from a range of buyers

Investment bank Macquarie’s list of 31 interested parties includes private equity firms, retail groups, and institutional investors. Some entities are eyeing Breuninger’s fashion retail business, while others are more interested in its property assets. Notably, potential buyers for the retail segment include Spain's El Corte Inglés and France's Galeries Lafayette. Meanwhile, institutional investors like Deka, DWS, and Union Investment, as well as international firms like Apollo and Morgan Stanley, have shown interest in the property assets.

Thai retail group Central Group and the family office of U.S. businessman Richard Baker are reportedly interested in acquiring both the retail business and the property assets. Baker recently acquired the bankrupt German department store chain Galeria Karstadt Kaufhof. Even Amazon is rumored to be among the potential buyers.

Valuation and bidding timeline

Analysts speculate that Breuninger could be sold in its entirety, with a valuation of approximately €2.5 billion. After accounting for outstanding debts, the acquisition price could be around €2 billion, with property assets valued at €1.8 billion. Initial bids are expected by the end of October.

Breuninger operates 13 high-end department stores in cities like Stuttgart and Düsseldorf. Last year, the group reported a revenue of approximately €1.5 billion, with its online store, which is active in 10 countries, contributing to 50% of this figure.

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