TDR Capital to acquire NKD Group from OpCapita

Investment funds managed by TDR Capital, a UK based private equity investor, are to acquire 100 percent of NKD Group. TDR Capital and NKD's current shareholder, OpCapita, have signed a sale & transfer agreement to that effect. The transaction is subject to the customary antitrust approval.

Established in 1962, NKD Group is among the leading 'value retailers' and local suppliers to the textiles retail trade in Central Europe. Textile discounter NKD offers a wide range of seasonal fashions, home textiles, and home accessories in its almost 1,800 stores. NKD employs some 8,000 people (6,350 of them in Germany) and generated sales to the tune of 700 million Euros in 2018.

Under the aegis of, OpCapita, who took over the company in 2013, NKD completed a very successful turnaround. NKD achieved above-average sales and profitability increases, mainly by optimising its store portfolio and by efficiently realigning its product ranges and procurement processes. At this point in time, 97% of all stores are profitable and the number of stores is on the increase again since 2018. On the sales end, NKD posted a slight increase in sales contrary to the industry trend in 2018 – which was challenging for the entire textile industry – meaning that NKD has grown for the fifth year in a row.

Dr Ulrich Hanfeld, CEO of NKD Group, says: "We would like to thank the OpCapita team for their invaluable support and guidance. We have mastered a successful turnaround in recent years, thereby paving the way for ongoing sales growth and a further increase in profitability. With TDR Capital, we have found the perfect partner to accompany us during the next stage of our company's development. We are expecting to see robust sales growth and a further increase in our profitability in the years to come – both in comparable sales areas and as a result of expansion. For the current 2019 financial year, we are again planning a strong expansion of our existing markets, with a clear focus on our German home market. We will be managing our growth strategies from our corporate headquarters in Bindlach and are planning to create more jobs across all areas of the company.”

Joshua Spoerri, managing director at OpCapita, says: “We are extremely pleased to announce this transaction, which marks the first exit from our first fund. The turnaround we have achieved at NKD is emblematic of OpCapita’s approach; taking a struggling consumer business and transforming it into a profitable, stable business with great prospects and that continues to delight its thousands of customers. We thank the management team and all NKD’s staff for their hard work over the past few years and wish them every success under TDR Capital as they embark on the next phase of their journey.”

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