Central, Signa ink deal for Globus chain
published : 5 Feb 2020 at 04:01
newspaper section: Business
Central Group and Signa have teamed up on a 50:50 joint venture to acquire Globus, a Swiss chain of luxury department stores, and eight associated properties from Migros-Genossenschafts-Bund (MGB).
The two firms already jointly own Germany's KaDeWe Group, with upcoming projects in Dusseldorf and Vienna.
Central Group also owns Italy's Rinascente and Denmark's Illum.
With Globus, the combined presence of Signa and Central Group will span five countries in Europe: Germany, Austria, Italy, Denmark and Switzerland.
"For the acquisition of Globus Switzerland, the deal is a joint venture between Central Group and Signa, our incumbent partner in the KaDeWe Group and a new project in Vienna," said Tos Chirathivat, executive chairman and chief executive of Central Group.
"The transaction includes the purchase of prime Swiss properties and a hotel, worth over 1 billion Swiss francs altogether."
Since entering Europe in 2011 with the Rinascente acquisition, Central's business in Europe has grown from €200 million to this year's projected €2 billion.
"Globus is a wonderful brand very close to our hearts. We are delighted to welcome it as a member of our family," said Vittorio Radice, chief executive of Central Group Europe. "As a historic Swiss brand, Globus is a perfect fit for our European alliance, with a strong local presence and great international recognition. By working together, we will guarantee Globus and the rest of our brands a solid, sustainable and successful future."
Mr Radice will assume strategic leadership of Globus and be supported by an experienced team from the group of shareholders and affiliated companies.
Thomas Herbert, the current CEO of Globus, will become a member of the board of directors. Franco Savastano, the current deputy CEO of Globus, will assume the operative management as CEO.
The signing of the transaction has already taken place, though the final acquisition is subject to approval by European competition authorities and should be completed by mid-2020.