Lion Capital acquires Dutch retail chain

London-based private equity firm Lion Capital is taking over Dutch retail chain Hema. Hema's current owner, Maxeda, and Lion Capital made the announcement on Friday and expect the transaction to be completed before the end of July, pending approval from the Works Council and the relevant Competition Authorities.

Hema - which specializes in affordable food and non-food products under its own brand name - is a Dutch institution, with stores throughout the country and a staff of 10,000. It is also active in the Benelux and Germany. Last year, the chain generated gross sales in excess of €1.3 billion, while operating profit grew in the double-digits.

It is Lion Capital's intention to continue growing the store's portfolio within the markets in which it is currently active. “Hema is an iconic brand in the Netherlands and Lion Capital intends to support its continued growth,” says Kelly Mayer, a partner of Lion Capital responsible for Investor Relations. “Hema has strong brand equity – which is typically what we look for in investment opportunities – and has enjoyed success under a strong management. We therefore see no reason to make any changes to the company.”