Dutch retailer Hema explores possible sale

Dutch discount retailer Hema's private equity owners are exploring strategic options for the business, including a possible sale, the company announced on Thursday.

Lion Capital, which has owned the company since 2007, has appointed Credit Suisse to advise on the process.

"Hema is well-positioned now to benefit from the future growth potential ahead, supported by a strong Benelux business and successful international expansion," the company said.

Founded in 1926 in Amsterdam, Hema has 30,000 own-brand products and services ranging from baby clothes, to pots and pans, towels, sweets, and make-up.

It has been expanding internationally and now has more than 700 stores in the Netherlands, Belgium, Luxembourg, France, Germany, Spain and the United Kingdom.

The high-street chain opened its first store in Luxembourg in 2006 and currently has four shops in the country.

Hema reported adjusted earnings before interest, tax, depreciation, and amortisation (EBITDA) of €24.8m for the second quarter of 2017, an increase of 13.2% on the previous year.

In Belgium and Luxembourg, net sales rose 2.7% to €35.2m, due to strong store performance and the renewal of the product range, the company said.

(By Hannah Brenton, hannah.brenton@wort.lu, +352 4993 728)