Reuters: Private Equity: Funds circle French retailer BUT - sources

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Funds circle French retailer BUT - sources Apr 3rd 2012, 17:43 By Julien Ponthus PARIS, April 3 | Tue Apr 3, 2012 1:43pm EDT PARIS, April 3 (Reuters) - Investment funds have expressed an interest in buying French furniture and electrical appliances retailer BUT, which private equity owners Colony Capital, OpCapita and Goldman Sachs could consider selling, private equity sources said. The owners are ready to sell having changed its management and put in place a turnaround of the business, according to the sources. "There is no formal mandate for the sale ... but it's an asset for which there are signs of interest, which the shareholders are studying," one of the sources said on Tuesday. Colony Capital, OpCapita and Goldman Sachs declined to comment. The head of BUT, Regis Schultz, said it was normal for funds to approach the owners given that they had invested four years ago, though he was not aware of any specific offer. Schultz said BUT had achieved average annual sales growth of 7 percent during the last three years, reaching 1.8 billion euros ($2.4 billion) for the brand overall and 1.2 billion from the stores which BUT SA owns. Earnings before interest, tax, depreciation and amortisation are a little over 80 million euros, he added. The possible sale comes at a time when investment activity and acquisitions are at a low point in Europe, as credit has become less available and the economy has struggled. Few transactions are currently leading to firm offers. According to Thomson Reuters data merger and acquisition deals involving at least one French company totalled $14.1 billion between Jan. 1 and March 23 whereas they were worth roughly three times more in the same period last year. Link this Share this Digg this Email Reprints

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