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STEINHOFF INTERNATIONAL HOLDINGS N.V. - Alteri Investors To Acquire Bensons For Beds, Harveys Furniture And Associated Group Of Manufacturing Companies

Release Date: 15/11/2019 13:00
Code(s): SNH     PDF:  
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Alteri Investors To Acquire Bensons For Beds, Harveys Furniture And Associated Group Of Manufacturing Companies

Steinhoff International Holdings N.V.
(Incorporated in the Netherlands)
(Registration number: 63570173)
Share Code: SNH
ISIN: NL0011375019

Alteri Investors to acquire Bensons for Beds, Harveys Furniture and associated
group of manufacturing companies

-   New owners will back management to return the Group to profitability
-   The acquisition will be the first deal from Alteri Investors’ second fund,
    launched in August 2019

    London, 15th November 2019: Alteri Investors (“Alteri”), the specialist European retail
    sector investor, has today reached agreement to acquire Blue Group Hold Co Ltd (“the
    Group”), owner of Bensons for Beds, Harveys Furniture and upholstery & bedding
    manufacturers Relyon, Steinhoff UK Beds and Formation Furniture, from Steinhoff
    International Holdings N.V. (“Steinhoff”).

    Harveys and Bensons for Beds, which have been owned by Steinhoff since 2005, trade
    from 269 stores. The Group, which also has four manufacturing sites, as well as five
    distribution centres in the UK, employs more than 2,700 people and has an annual
    turnover of over £500m.

    Bensons for Beds, which has a near 70-year heritage, is the largest bed retailer in the
    UK by store number and the third-largest by revenue. Harveys, founded in 1966, is a
    nationally recognised brand and the largest furniture specialist in the UK by store

    The associated group of manufacturing companies has many years of expertise within
    bedding and upholstery and is the market leader in the production of high quality
    mattresses, divan sets and furniture. The manufacturer supplies the retail business in
    addition to a number of renowned high street retailers.

    With the backing of new owners, management will be able to drive continued
    improvement in the performance of the Group, having already made progress with a
    series of initiatives launched in 2018. Alteri Investors is fully supportive of the
    management team, and will work with them to develop the strategy to transform the
    Group’s profitability.

    The investment will be made from Alteri’s second investment vehicle, launched in
    August 2019, with the backing of funds and accounts managed by affiliates of Apollo
    Global Management, Inc.

    Alteri Investors founder and CEO Gavin George said: “This is exactly the type of
    investment opportunity our second fund was launched to find – trusted retail brands with
    strong management and the potential for profitable growth. We are really excited to
    support Mark and the team on a successful turnaround of the business and are confident
    that our operational capabilities, alongside the injection of fresh capital, can help to build
    a market leading, vertically integrated business with a strong omnichannel presence.”

CEO of Blue Group, Mark Jackson said: “We are delighted to be teaming up with Alteri.
Throughout the sale process, they have demonstrated an in-depth understanding of our
business and their expertise, not least in digital, will help turbo-charge our plans to drive
the performance of the group.”

Steinhoff Group CEO Louis du Preez said: “The sale of Blue Group is the latest in a
series of planned divestments by Steinhoff as we continue with our announced strategy
of simplifying the Group’s portfolio and deleveraging our balance sheet. We have
enjoyed a long association with the Blue Group businesses, and we wish Alteri and the
Blue Group management team every success with their future plans.”

The acquisition is subject to regulatory approval.

About Alteri Investors

Alteri Investors is an operationally-driven, specialist investor, focused exclusively on the
European retail sector. It was launched in November 2014, as a joint venture between
Alteri’s management and funds managed by affiliates of leading alternative investment
manager Apollo Global Management, Inc.

Retail sector expertise, a hands-on style and deep transformational skills lie at the heart
of Alteri’s approach, enabling it to support management teams and optimise value
creation. Alteri’s proven expertise is combined with access to substantial capital for

Alteri’s investment focus covers the entire spectrum from performing retailers to those
facing significant operational and financial challenges. Alteri has had particular success
with CBR Fashion, one of Germany’s leading womenswear businesses, and leading
multi-channel retailer Versandhaus Walz, which has successfully undergone a
comprehensive turnaround. Exited investments cover a range of equity, debt and direct
lending transactions across multiple retail sectors and Western European geographies,
notably in Germany, Switzerland, the Netherlands and the UK.

Alteri Investors is based in London.

About Steinhoff

Steinhoff International Holdings N.V. is an investment holding company which
manages a portfolio of retail businesses that operate through more than 40 brands and
30 countries across the world. Steinhoff Group businesses add value to their
customers’ lives by providing everyday products at reasonable prices. Headquartered
in Cape Town, South Africa, the holding company is registered in the Netherlands and
listed on the Frankfurt and Johannesburg Stock Exchanges.

JSE Sponsor: PSG Capital
15 November 2019

Date: 15/11/2019 01:00:00
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