SCP Group, a Luxembourg-based financial investment firm, has entered into an agreement with Metro AG to acquire 100% of Real, including Real’s stationary retail business (276 stores), the digital business including the online marketplace real.de, 80 real estate properties and all of Real’s affiliated companies.
”METRO AG expects net cash inflow of around €0.3 billion upon closing of the transaction, implied enterprise value of around €1.0 billion,” said the companies in a statement.
All of the approximately 34,000 Real employees will be taken over with their current contracts under existing conditions. SCP Group will be responsible for managing Real’s businesses and will rely on its strategic partner x+bricks Group, a German investor focusing on food-anchored real estate, to jointly oversee the repositioning of the real estate portfolio.
“It is important to us that the majority of today’s Real stores will continue to be operated in some form in the future. Thereby, many of the experienced and qualified Real employees will have good prospects of continuing their employment going forward. Further, all employees have additional security through a works council agreement jointly concluded with the General Works Council. Our partners SCP Group and x+bricks Group have the necessary experience and network to ensure that remarketing of Real stores is economically viable and in the best interest of all employees. On METRO’s way to becoming a pure wholesaler, the divestment of Real represents the last major portfolio transaction following the sale of Galeria Kaufhof and the demerger of MediaMarkt and Saturn. Now, METRO can fully concentrate on its core business,” said Olaf Koch, CEO of Metro AG.
“Today, we have achieved an important milestone that will provide Real locations with the best available economically viable concept for the future. SCP Group and x+bricks Group combine a highly dedicated team with high retail and real estate expertise, the necessary funds as well as a long-term vision for Real and its locations. We are confident to find good individual solutions for most locations depending on local conditions. The future of the real employees is important to us and we will try to avoid store closures and lay-offs as far as possible. However, our approach will depend on the joint commitment from all interested parties. This will require a constructive dialogue with everyone involved: employees, local politicians, and owners of the Real retail properties – and of course, works councils and trade unions. Therefore, we will use the upcoming weeks and months to enter into hopefully fruitful discussions with all relevant parties,” said Marjorie Brabet-Friel, CEO of SCP Group.
For more information on this acquisition, please click here for the full press release.