Sun European Partners in German retail write-off

The firm has lost its investment in Strauss Innovation having acquired the company in 2011

Sun European Partners, the European arm of US-based Sun Capital Partners, has written off its investment in Strauss Innovation, a German retail chain.

The business has been passed on to German-based Muehleck Family Office, according to a source familiar with the matter. Sun European Partners has lost its original investment, the source added.

Sun European Partners declined to comment.

Sun hired Deloitte to handle the sale late last year, after the company struggled in recent years. “More than that of other competitors, Strauss’ product offering is highly geared to current trends and seasons, which meant that last year’s unfavourable weather in particular had a pronounced negative impact on business development,” Strauss Innovation said in a statement in January.

Sun European Partners acquired the business in 2011 from EQT Partners, which restructured it after buying the loss-making business in 2008, according to a Sun European Partners statement at the time. The investment was made by Sun Capital Partners V, a $5 billion-2007 vintage, the source said.

Sun recently completed its sale of specialty chemicals company Emerald Performance Materials to American Securities, netting a return of 9x, PEI reported in June. Last year, the firm completed eight exits and two successful IPOs totalling more than $1 billion in realisations.