Private Equity News & Analysis

Nordwind does second deal

German contrarian Hans Albrecht has invested in his second deal through his firm’s 2004 fund, buying two Austrian electronics retailers with VMS, an Austrian rival turnaround specialist.

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Nordwind Capital, a German private equity company, and Value Management Services, an Austrian private equity firm are buying COSMOS, an electronics retailing chain in a 50/50 partnership deal

Under the terms of the deal, Value Management is to place 100 percent of the shares it holds in Niedermeyer, also a consumer electronics retailer, into a joint holding.

No financial details were disclosed.

It is the second transaction by Nordwind Capital Fonds, a €300 million fund raised in 2004. Value Management Services split the deal between its REB I and REB II funds.

Cosmos has revenues of about €260 million in 2005 and a market share of
8.4 percent. It is Austria’s second-largest consumer electronics chain, operating 27 superstores in the country.

Niedermeyer is the fifth-ranked player in Austria’s market for consumer electronics with revenues of €200 million.

Together with Cosmos, the deal will create one of the largest groups in Austria’s consumer electronics trade with a total market volume of €3.1bn. The two private equity group said they hope to realise significant synergies.