Surprise takeover by takeover target

Baywa AG is hiving off its DIY and garden store division to a new company. The Semer Beteiligungsgesellschaft mbH will hold a 50 per cent stake, to be gradually increased to 100 per cent, in the newly founded company, Baywa Bau- & Gartenmärkte GmbH & Co. KG, which is headquartered in Munich. This will result in one company that has for years been named as a potential takeover target taking over another potential takeover candidate. The entire control system, including buying and sales, is also to be provided progressively by Hellweg. The purchase price amounts to € 28 mio altogether. This corresponds to the book value of the equity capital and will be due in several steps. The new company took up its business operations on 1 January 2012, when it entered into a strategic partnership with the Hellweg Group. The DIY retailer Hellweg belongs to the Semer family’s portfolio. A total of 56 Baywa stores with some 1 800 employees will pass to the new company; they will continue to trade under the Baywa banner. According to Hellweg, there is practically no overlapping within the network of branches. The real estate remains the property of Baywa AG and is being leased to the Baywa Bau- und Gartenmärkte GmbH & Co. KG. The transaction is subject to approval by the federal cartel office. Werner Carl, the former director of Baywa’s DIY and garden store division, is one of the new company’s two managing directors. He will be joined by Christoph Semer representing the co-partner. There are no changes for the franchise businesses that are affiliated to Baywa (22 at the end of 2010). They will continue to be supported by their respective system headquarters. A total of 56 Baywa stores will pass to the new company. However, 15 outlets are remaining with the organisation and will be allocated in accordance with local circumstances to the other Baywa divisions: building materials, agriculture and technology. These stores are small-format neighbourhood suppliers and/or outlets that are too closely linked geographically to other divisions to be operated as “stand alone” units. Two areas that remain unaffected by the transaction are Baywa’s national and international franchise operation, as well as its builders’ merchant business, which is to be further expanded. Download: