Dutch bed retailer Beter Bed has succeeded in offloading its German subsidiary, Matratzen Concord, to investor Magical Honour. The latter is paying five million euros for the controversial mattress retailer and will invest just as much in Beter Bed Holding itself.
Going downhill since 2018
Beter Bed had long been looking for a buyer for its German, Swiss and Austrian stores: since a poison scandal in 2018, the mattress retailer had to suffer one loss after another.
A major reorganisation, which led to the closing of 15 % of the stores, did not help and ultimately Beter Bed had to offload its German subsidiary as quickly as possible in order not to go bankrupt itself. The deal adheres to two wishes: the management’s – that the sale would be done before the end of the this year – and the analysts’s – that the retailer would not have to put in money itself just to be able to get rid of Matratzen Concord.
At the last minute
Investor Magical Honour is now fulfilling both, by paying five million euros for the activities in German-speaking countries. The price can, according to the agreement, still be increased if Matratzen Concord meets certain performance targets within the first year after the acquisition. However, the amount that the purchaser is willing to pay in that hypothetical case, and the objectives that have been set, will not be disclosed.
Magical Honour is also linking the acquisition to an investment in parent holding Beter Bed: the Dutch retailer is issuing 2.15 million new shares, for which the investor group is paying another five million euros. It will therefore acquire an 8.9 % stake in the Dutch retailer. At the end of November, however, Beter Bed’s shareholders will still have to give the green light for the issue of the new shares. Moreover, the German competition authorities have yet to give the go-ahead for the acquisition. Nevertheless, the holding company expects to be able to complete the whole process before the end of the year.
