- Simone Preuss
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Austrian real estate company Signa Holding GmbH announced on Friday that it has sold the Eastern European business of its furniture chain kika to Austrian online furniture retailer XXXLutz. The Eastern European business operated independently of the Austrian core business, which will profit from the proceeds of the sale.
The sale includes both the operational retail business with 1,500 employees as well as 22 properties in Hungary, Czech Republic, Slovakia and Romania. XXXLutz signed the contracts for the sales already a month ago, on 26th April 2016. The proceeds from the sale will be reinvested in the national core business to boost kika/Leiner’s modernisation programme in Austria. The parties have agreed not to disclose the purchase price and the acquisition is subject to approval by the antitrust authorities.
“As a long-standing Austrian company, securing kika/Leiner’s future for the long term in Austria and regaining a sustainable outlook was important to us from the very outset. Signa has invested a triple-digit million figure in the Austrian core business and the modernisation programme is progressing extremely well. We have now taken the next step and are focusing even more on our home market,” commented Signa Holding’s CEO Christoph Stadlhuber in the press release.
“The kika/Leiner team has succeeded in repositioning the company perfectly in recent months. We are regaining the trust of our customers, which is also reflected in rising sales,” added Wolfram Keil, chair of the supervisory board of kika/Leiner.
Signa acquired kika/Leiner last June for 490 million euros. The acquisition included the operative retail business with approximately 6,500 employees, as well as around 100 properties in Austria and Central and Eastern Europe. Founded by Austrian businessman René Benko, the Signa Group is a privately managed, European investment and industrial holding company specialising in the retail and real estate sectors, among others. Under one roof, the Signa Retail Group brings together five independent retail platforms: Signa Premium, Signa Department Store Group, Signa Home & Lifestyle, Signa Food & Restaurants and Signa Sports United.
Photo: kika.at
