Mobilux to acquire Conforama France
Mobilux, the holding company of BUT, a Clayton, Dubilier & Rice (CD&R) portfolio company, is to acquire Conforama France, a subsidiary of Steinhoff International, to create the largest omnichannel furniture retail group in France.
After the transaction close, BUT and Conforama France will continue to operate as independent entities under common ownership.
Conforama France is a leading home equipment retailer of furniture, decoration, and a range of homeware appliances and electronic goods. The combination with BUT will be No1 by revenue in the French home furnishings market, underpinned by strong brands, a broad network, competitive product positioning and a compelling customer value proposition. Together, the two businesses operate nearly 500 stores. The combination will allow management to leverage the combined strengths and geographic coverage of each business and reinforce leadership in core furniture categories and broader home equipment products.
The transaction further extends CD&R’s strategic partnership with WM Holding, an affiliate of XXXLutz, the second largest furniture retailer in Europe, who together with CD&R funds currently own BUT in a 50-50 partnership. Sir Terry Leahy, a Senior Advisor to CD&R funds and the former CEO of Tesco plc, will chair the company.
“We look forward to working with our partner WM Holding as well as the BUT and Conforama management teams under this new common ownership structure, which we believe will accelerate the profitable growth of both companies,” says Sir Terry.
“The French consumer and retail market is very important to CD&R and this transaction provides an opportunity for us to bring our operating expertise and capital to bear to support a French Champion and provide compelling benefits to all stakeholders” said CD&R Partner Greg Lai.
“This partnership transaction further grows our consumer and retail franchise in Europe, and aligns with CD&R’s strategy of providing solution capital and operational value to support corporate transformations,” says CD&R Partner Marco Herbst.
Over the last decade, CD&R has committed more than USD10 billion to nearly 30 solution capital transactions, often in partnership structures, including the recently announced GBP85 million PIPE investment in SIG plc, a leading European supplier of specialist building materials. This PIPE investment was the first of its kind in Europe in over a decade.