Deal Announcement


DC Advisory advises Migros-Genossenschafts-Bund on the sale of its shareholding in Gries Deco Holding and DEPOT CH

23 Dec 2019

Background

  • Gries Deco Company (DEPOT) led by Christian Gries, is a leading German multi-channel retailer specialising in decoration and living accessories
  • Headquartered in Niedernberg (Germany), DEPOT was founded in 1948 and employs approximately 8,400 people
  • DEPOT operates more than 500 Point of Sale systems (POS) in Germany, Austria and Switzerland, and is accompanied by a growing online store as well as more than 100 shop-in-shop POS
  • Migros-Genossenschafts-Bund (MIGROS) acquired 90% of the shares in 2009 and 2013, Christian Gries owned the remaining 10%. Additionally, MIGROS held 100% of shares in DEPOT Switzerland
  • MIGROS has invested heavily in the growth of the Gries Deco Group, which led to a growth of the store portfolio from 109 to 500 stores and corresponding sales growth from EUR 83 million to over EUR 480 million
  • Due to changing market conditions and customer purchasing behaviour, DEPOT experienced negative like-for-like sales and pressure on gross margins, resulting in the need for a restructuring opinion

Process 

  • DC Advisory (DC) supported bilateral negotiations between MIGROS and Christian Gries. DC conducted a selective market sounding in order to identify and line up alternative investors in parallel
  • DC ensured that all work streams, in particular the IDW S6 restructuring opinion and a real estate appraisal, were thoroughly prepared and successfully completed

Outcome

  • As part of a management buyout, Christian Gries took over all shares of the two companies, Gries Deco Holding GmbH and DEPOT CH AG
  • The buyout was supported by MIGROS through a debt waiver as well as new financing
  • A pre-condition for the debt waiver was a tax ruling, resulting in the tax exemption of the restructuring gain

Deal Team

Stephan von Parpart

Managing Director
Germany

Frank Jung

Managing Director
Germany

Stefan Jaecker

Managing Director
Germany

Ari Winarto

Director
Germany