Bangkok, 4 February 2020: In a 50:50 joint venture, SIGNA and Central Group acquire the Swiss luxury department store chain, “GLOBUS”, along with eight associated real estate properties at top inner-city locations from the Migros-Genossenschafts-Bund (MGB).
SIGNA and Central Group jointly own Germany’s KaDeWe Group with upcoming projects in Düsseldorf, and Vienna, Austria; while Central Group currently owns 9 Italy’s Rinascente and Denmark’s Illum.
With GLOBUS, the combined presence of SIGNA and Central Group will span 5 countries in the continent – Germany, Austria, Italy, Denmark, and Switzerland – making both one of the leading operators and owners of luxury department stores in Europe.
“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. The transaction includes the purchase of prime Swiss properties and a hotel, worth over ₣1 billion altogether.”, said Tos Chirathivat, Executive Chairman and CEO Central Group.
Since entering Europe in 2011 by Rinascente acquisition, our business in Europe has grown from €200 million to this year projected €2 billion. Today, we are operating 19 cities in 5 European countries, plus two under development in Düsseldorf and Vienna. 8 of which will be flagship stores. We are now one of the largest luxury retailers in Europe.
Vittorio Radice, CEO of Central Group Europe, representing the SIGNA and Central Group joint venture: “GLOBUS is a wonderful brand very close to our hearts. We are delighted to welcome it as a member of our family. As a historic Swiss brand, GLOBUS is a perfect fit for our European alliance with 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.”
Fabrice Zumbrunnen, Chairman of the Migros Executive Board (MGB) comments: “GLOBUS’s new owners offer strong commitment and optimal conditions for a successful future for GLOBUS. SIGNA and Central Group operate some of Europe’s best luxury department stores. I am convinced that GLOBUS will be able to benefit from their extensive know-how and substantial experience in the realignment of premium and luxury department stores.”
JOURNEY INTO THE FUTURE
The new owners aim to develop GLOBUS into the leading luxury department store group in Switzerland with a strong national identity by means of rapid integration and sustainable repositioning.
Vittorio Radice: “Working with the KaDeWe Group, Rinascente and Illum, GLOBUS will benefit from the know-how and experience necessary to develop and drive the department store of today. Together we will implement our successful business model at GLOBUS, assuring the premier role in delivering Swiss excellence for local customers and international visitors. Our shareholders will invest substantially in GLOBUS stores in order to guarantee its future sustainability for the long term.”
STRONG SWISS BRAND AS ITS FOUNDATION
The foundation of this future programmes are the existing values and core competencies of GLOBUS as a Swiss traditional brand. These include the great popularity among the Swiss customers, the highly motivated and experienced employees, and the excellent customer card programme, the high assortment competency in categories such as Delicatessa, Home or Beauty, as well as the unique locations.
Vittorio Radice: “With the combined financial strengths of SIGNA and Central Group, even in a challenging market and competitive environment, GLOBUS has excellent prospects to continue to be a very attractive proposition for all its customers.”
TEAM AND MANAGEMENT
Vittorio Radice will assume strategic leadership of GLOBUS. He will be supported by an experience team from the group of shareholders and the affiliated companies. Thomas Herbert, currently CEO of GLOBUS, will become a member of the Board of Directors. Franco Savastano, currently Deputy CEO of GLOBUS, will assume the operative management as CEO. Vittorio Radice: “We are absolute team players. This makes us strong as shareholders, partners and as a group. We very much look forward to working with our Swiss colleagues.”
The signing of the transaction has taken place. The final acquisition is subject to the approval from the European competition authorities and should be completed by mid-2020 (closing).