Transaction: Divestments
Date: January 2013
Deal value: Not disclosed
Process: Private auction
Industry: Retail

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Tiger is a highly successful and fast growing variety store concept with more than 170 stores across Europe with the majority of stores located outside Denmark.

Tiger started in 1995 as a Danish discount store. Since then, the Company has been through a major evolution and is today an international “fun shopping” concept offering a broad range of affordable products with a Scandinavian design DNA. Over the last five years, Tiger has had sales growth of more than 25% per year, and last year posted sales of DKK 710 million and EBITDA of DKK 110 million. In the same period, the Company more than doubled its store network through a combination of fully-owned stores and stores developed by local joint venture partners in the major cities of Europe. This year, the Company has opened 52 stores, including the successful opening of a test shop in Osaka, Japan. At the end of the year, the Company expects to reach 195 stores, with more than 2/3 of the stores located outside of Denmark.

The acquirer; EQT is one of the leading private equity groups in Northern Europe with over 19bn in raised capital and activities in Northern- and Eastern Europe, China and USA. EQT fund VI is to acquire 70% of Tiger and support Tiger in its ambition of becoming a leading global retail concept.

FIH PARTNERS has acted as exclusive financial advisors to the owners of Tiger and our services included:

  1. A pre-process strategic review of the group from a commercial, operational, legal and financial perspective which resulted in several pre-process undertakings by the group and its various advisors incl. a concept verification and customer study, developing a long term strategy, re-thinking its JV agreements, building its organisational capacity, improving the financial transparency and reporting, documenting the group’s commercial and financial track-record, etc.
  2. Arranging a structured auction process targeted at potential investors with significant international retail experience and assisting in the negotiations of terms for the transaction and the future partnership

The sale of shares to EQT was the result of a highly competitive process. The parties have agreed not to disclose the value of the investment and the transactions is subject to regulatory approval from the competition authorities.