The sale of the Breuninger department store chain, along with its real estate, began in June. A total of 31 bidders are in the running, including some surprising names.
Breuninger sale process draws 31 bidders, including surprise names
The families that own the Breuninger Group have decided to sell both the retail business and the associated real estate. According to information from WirtschaftsWoche, the sales process—internally referred to as “Project Keystone”—was initiated back in June. A spokesperson for Breuninger declined to comment on the sale.
According to a list from the investment bank Macquarie, 31 companies have expressed interest in Breuninger, including both financial investors and retail companies. Some are only interested in the department store operations, while others are focused solely on the real estate. A third group of bidders is considering acquiring both.
Among the candidates for the retail business are the Spanish department store chain El Corte Inglés and the French chain Galeries Lafayette. For the real estate, various institutional investors are reportedly interested, including Frankfurt-based fund companies Deka, DWS, and Union Investment, as well as international investors such as the private equity firm Apollo and the investment bank Morgan Stanley.
The entire Breuninger Group, including both the operational business and the real estate, has attracted interest from Thailand’s Central Group and the family office of American Richard Baker, who acquired the Galeria Karstadt Kaufhof department store chain from bankruptcy earlier this year. According to WirtschaftsWoche in its Friday edition, Amazon is also listed as a potential buyer.
Insiders speculate that the entire Breuninger Group could be sold for a company valuation of €2.5 billion. After deducting debts, the purchase price could be around €2 billion, with approximately €1.8 billion attributed to the real estate. Initial bids are expected by the end of October.
Breuninger operates 13 premium department stores, including locations in Stuttgart and Düsseldorf. Last year, the group generated approximately €1.5 billion in revenue, with around 50% coming from its online shop, which operates in ten countries.
