Austrian furniture retail group XXXLutz has announced plans to acquire online German furniture retailer home24 SE.
home24 has entered into a Business Combination Agreement with XXXLutz KG and its subsidiary, RAS Beteiligungs GmbH.
“XXXLutz has announced a voluntary public takeover offer for all outstanding shares of the Company at a price of EUR 7.50 per home24 share. The acquisition is intended to provide long-term, strategic and sustainable financial support for home24’s growth strategy. It shall also strengthen and help expand home24’s market position as a pure-play home and living e-commerce destination,” a statement said.
XXXLutz, which operates more than 370 furniture stores in 13 European countries with an annual turnover of €5.34bn, will keep the existing home24 management team and will continue to be run independently.
The three members of the Management Board of home24, Philipp Steinhäuser, Brigitte Wittekind and Marc Appelhoff, have already extended their Management Board contracts and reaffirmed their support for this acquisition. In addition, the company’s headquarters will remain in Berlin.
Additionally, XXXLutz subscribes to a 10% capital increase at a share price of 7.50 euros. The company expects proceeds of around 23 million euros.
“We are delighted to continue our journey to become the leading online destination for Home & Living together with XXXLutz as a strong partner. For us as a management team, it was particularly important that XXXLutz shares and actively supports the vision of home24, assists us in its implementation and sees us continuing to operate as an independent company. We are convinced that together with XXXLutz we will significantly increase our robustness and punch in the furniture market,” said Marc Appelhoff, CEO of home24.
“The fact that we were able to attract a strong strategically oriented investor for home24 in times of global political tensions and depressed consumer sentiment is a vote of confidence in our business model. We are convinced that we have found a very good path for our employees as well as for shareholders and other stakeholders.”
“With its strong brand and leading position in the online home and living market, home24 is an ideal addition to XXXLutz. We are impressed by what the home24 team has built up over the last few years. As a strong partner, XXXLutz will support home24 in securing the company’s future through the current uncertain market environment and in seizing future growth opportunities based on its innovative business model. home24 will maintain its online pure-play focus as an independent company and benefit from the strength of the XXXLutz Group. Our offer enables shareholders to benefit from a significant premium of over 124%,” said Mag. Thomas Saliger, XXXLutz Group corporate spokesman.
With the support of major shareholders in providing irrevocable undertakings to tender their shares along with the shares from the capital increase, share purchases and other instruments, XXXLutz has secured a total of c. 60% of the shares in the future share capital of home24. The offer will be subject to the usual merger control clearances. A minimum acceptance ratio is not envisaged on the part of XXXLutz.
Lastly, the agreement specifies that XXXLutz will not enter into a domination or profit and loss transfer agreement with the company for a period of three years after completion. XXXLutz aims to delist the home24 share after the execution of the offer.