Mar 28
TDR Capital to acquire NKD Group from OpCapita

TDR Capital to acquire NKD Group from OpCapita

  • Strengthening a solid market position in a growing discount market
  • Continuing a growth strategy aimed at sales areas and omni-channel business
  • New jobs to be created across the company

Bindlach / London, 19th of March 2019 – Investment funds managed by TDR Capital, a UK based private equity investor, have agreed to acquire 100 percent of NKD Group. TDR Capital and NKD’s current shareholder, OpCapita, have signed a sale & transfer agreement to that effect. The transaction is subject to the customary antitrust approval.

Established in 1962, NKD Group is among the leading ‘value retailers’ and local suppliers to the textiles retail trade in Central Europe. Textile discounter NKD offers a wide range of seasonal fashions, home textiles, and home accessories in its almost 1,800 stores. NKD employs some 8,000 people (6,350 of them in Germany) and generated sales to the tune of 700 million Euros in 2018.

Under the aegis of, OpCapita, who took over the company in 2013, NKD completed a very successful turnaround. NKD achieved above-average sales and profitability increases, mainly by optimising its store portfolio and by efficiently realigning its product ranges and procurement processes. At this point in time, 97% of all stores are profitable and the number of stores is on the increase again since 2018. On the sales end, NKD posted a slight increase in sales contrary to the industry trend in 2018 – which was challenging for the entire textile industry – meaning that NKD has grown for the fifth year in a row.

Dr. Ulrich Hanfeld, CEO of NKD Group: “We would like to thank the OpCapita team for their invaluable support and guidance. We have mastered a successful turnaround in recent years, thereby paving the way for ongoing sales growth and a further increase in profitability. With TDR Capital, we have found the perfect partner to accompany us during the next stage of our company’s development. We are expecting to see robust sales growth and a further increase in our profitability in the years to come – both in comparable sales areas and as a result of expansion. For the current 2019 financial year, we are again planning a strong expansion of our existing markets, with a clear focus on our German home market. We will be managing our growth strategies from our corporate headquarters in Bindlach and are planning to create more jobs across all areas of the company.”Joshua Spoerri, managing director at OpCapita, said: “We are extremely pleased to announce this transaction, which marks the first exit from our first fund. The turnaround we have achieved at NKD is emblematic of OpCapita’s approach; taking a struggling consumer business and transforming it into a profitable, stable business with great prospects and that continues to delight its thousands of customers. We thank the management team and all NKD’s staff for their hard work over the past few years and wish them every success under TDR Capital as they embark on the next phase of their journey.”

With TDR Capital’s support, the current management will continue to drive NKD’s growth strategy in the sales areas and the Omni Channel business. This includes organic growth in the existing stores and in online sales, the opening of additional outlets in Germany and Italy, and the expansion into new markets.

About NKD
With a total of 1,800 stores in Germany, Austria, Italy, Slovenia and Croatia, its own online shop, and a staff of 8,000, NKD Group ranks among the largest textile retailers in the industry. At the end of the financial year 2018, NKD was employer to some 6,350 people in Germany alone. Established in 1962, NKD’s product portfolio ranges from the latest fashions for the whole family to functional sportswear to home textiles and seasonal decorative items all the way to selected brand ranges. The NKD Group is based in Bindlach, Bavaria.

About TDR Capital
TDR Capital is a highly selective European private equity firm established in 2002 and manages funds with over €8bn of committed capital. TDR Capital has an extensive investment track record across Western Europe, partnering with management teams to successfully develop and grow their businesses. Portfolio companies include LeasePlan Corporation, the largest corporate car leasing company in the world; Hurtigruten, a global expedition travel company; Buffalo Grill, the leading casual dining chain in France, and Euro Garages, one of the largest owners of convenience retail stores and petrol stations globally.

About OpCapita
Founded in 2006, OpCapita is a European private equity advisory firm specialising in the retail, consumer and leisure industries. The funds it advises actively invest in companies where there is an opportunity to deliver improvements in profitability and create long-term, sustainable value.

OpCapita’s team of in-house operating partners has decades of experience in consumer-facing businesses and a widespread network of contacts and specialists. The team adopts a hands-on approach to the companies in which it invests, drawing on exceptional management talent to deliver on its investments.

Over the past 13 years, OpCapita funds have invested c.€600 million in businesses in the UK, France, Germany, Italy and Spain. OpCapita closed its second dedicated fund, Op-Capita Consumer Opportunities Fund II LP, on €350m in 2016 and was significantly oversubscribed.

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