Adler Modemärkte AG
Adler Modemärkte AG: ADLER Acquires Kressner
Adler Modemärkte AG / Key word(s): Acquisition Press Release from Adler Modemärkte AG ADLER Continues Expansion ADLER Acquires Kressner Growth Strategy Implemented Haibach (near Aschaffenburg), 18 December 2014. Adler Modemärkte AG – one of Germany’s largest textile retailers – acquired 100% of the shares in Bekleidungshaus Kressner GmbH & Co. KG as well as the managing general partner Kressner GmbH from REWE Beteiligungs-Holding National GmbH and the Sanktjohanser family. Kressner currently operates nine stores that – subject to approval from the anti-trust authorities – are expected to be transferred to Adler Modemärkte AG at the beginning of the coming year. Both parties agreed to maintain the confidentiality of the terms and conditions of the agreement. “This acquisition allows ADLER to expand its network of stores with attractive locations and accelerates the Company’s profit-oriented growth. Stores like those of Kressner with more than 2,000 m2 of retail space are excellently suited for our expansion plans. In addition, approximately 100,000 customers are currently enrolled in the ‘Kressner Friends’ (Kressner Freunde) customer loyalty card programme, representing an enormous potential for ADLER”, said ADLER CEO Lothar Schäfer, commenting on the acquisition. Kressner currently generates approximately 70% of its revenue from its “Kressner Friends” customer loyalty card programme, which was introduced by ADLER employees in 2009. By acquiring another mom-and-pop business in Kressner, ADLER has also gained an attractive portfolio of stores which are well-established within the target group and have large amounts of retail space and thus are expected to generate a high level revenue. ADLER will assume the lease agreements, the terms and conditions of which are significantly more favourable than current arm’s length agreements. This will further increase the profitability of the stores. Often located in direct proximity to REWE stores and thus associated with a high number of potential new customers, the Kressner stores are even more attractive because the frequency of potential customers is significantly higher than at other locations. Accordingly, ADLER expects this to have a positive impact on EBITDA as early as 2016, the year following the acquisition. The break-even is expected in 2018. Alexander Pommer, Expansion Manager at Adler Modemärkte AG, said, “With the exception of the Wetzlar location, all of the Kressner stores are located in ‘white spot areas’, meaning that they are not near any ADLER stores, which will keep any cannibalisation effects to a bare minimum. The Kressner locations are so attractive that we would have opened our own stores in those locations even if we had not acquired Kressner.” The current Kressner stores are in good condition and require significantly less investment for their conversion into ADLER stores than new store openings would. The stores are located in Hesse (Dillenburg and Wetzlar), North-Rhine Westphalia (Ahlen, Kredenbach, Kreuztal and Waldbröl), Rhineland Palatinate (Wirges), Saxony (Bischofswerda) and Thuringia (Gotha). With the exception of the Kredenbach store (which will be closed at the end of 2015), all stores will be transitioned prior to the start of next season following the acquisition and will be operated under the ADLER brand. The product ranges of the stores will be gradually brought in line with the ADLER product range. Furthermore, the stores will also be part of ADLER’s “Click & Collect” programme, which allows customers to pick up merchandise they purchased online at ADLER stores, which will further promote ADLER’s omni-channel strategy. To date, Kressner has not operated its own online shop, and this would represent an additional source of potential revenue. The acquisition is in keeping with the Company’s growth strategy and will increase the total number of ADLER stores to 178. ADLER is strictly focused on profitable growth and plans on continuing its successful implementation of this strategy by opening new stores and by expanding its existing online shop. Accordingly, specific plans are already in place to open two additional new stores in Q1 2015, one of which is the recently announced acquisition of a mom-and-pop speciality textile retailer in Mömlingen. Adler Modemärkte AG, headquartered in Haibach near Aschaffenburg, Germany, is one of Germany’s largest and most important textile retailers. In 2013, the Group generated revenue of EUR528.6 million with a workforce of around 4,300, generating EUR42.9 million in EBITDA. ADLER currently operates 170 stores, 145 of which are located in Germany, 22 in Austria, two in Luxembourg, one in Switzerland, plus an online shop. The Company focuses on large-space concepts offering in excess of 1,400 m2 of retail space. With its many own brands and select external brands, ADLER offers a highly diverse product range. Thanks to more than 60 years of tradition and strong customer loyalty, ADLER considers itself to be the market leader within its target group of affluent customers aged 45 and over. Press enquiries: 18.12.2014 Dissemination of a Corporate News, transmitted by DGAP – a service of EQS Group AG. The issuer is solely responsible for the content of this announcement. The DGAP Distribution Services include Regulatory Announcements, Financial/Corporate News and Press Releases. Media archive at www.dgap-medientreff.de and www.dgap.de |
Language: | English | |
Company: | Adler Modemärkte AG | |
Industriestraße Ost 1-7 | ||
63808 Haibach | ||
Germany | ||
Phone: | +49 (0) 6021 633 0 | |
Fax: | +49 (0) 6021 633 1299 | |
E-mail: | info@adler.de | |
Internet: | www.adlermode.com | |
ISIN: | DE000A1H8MU2 | |
WKN: | A1H8MU | |
Listed: | Regulierter Markt in Frankfurt (Prime Standard); Freiverkehr in Berlin, Düsseldorf, Hamburg, Hannover, München, Stuttgart | |
End of News | DGAP News-Service |
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