Paris department store chain Le Printemps is acquired by Golf State Investors
Everyone visiting the French capital Paris will have seen the beautiful store of the department chain Le Printemps and it is no surprise that Qatari investors have had a sight on this building and the entire chain
The transaction is estimate by experts at around EUR 1.6 billion (USD 2.08 billion), including EUR 550 million of debt. In 2011 the Qatari investors bought a stake of one percent in LVMH Moet Hennessy Louis Vuitton and the Royal Family bought the famed emporium Harrods and Italian Fashion House Valentino. Also the French soccer team Paris Saint-German and stakes in flagship companies in heavy industry and media belong now to the Qatari investors. The true identity of the investors is usually not revealed and this is of concern to the employees’ union at Le Printemps.
The up today owners, the Borletti Group, owning 30 % of Le Printemps will purchase the remaining 70 % stake from Deutsche Bank AG’s real estate fund RREEF. In turn, Divine Investments SA, Luxemburg, is to acquire the Italian group Borletti. The Qatari investors made it mandatory to own 100 % of Le Printemps, thus without minority partners. Also competitor Galéries Lafayette were interested to acquire its keenest competitor for a long time, but voiced the interest only after Borletti talked exclusively to the Qatari investors. Borletti acquired the Le Printemps group in 2006 for EUR 1.08 billion from French PPR and has invested EUR 350 million into overhauling the chain, pushing the business upmarket in a bid to tap into the lucrative luxury market and set itself apart from adjacent rival Galéries Lafayette being more focused on fashion for a wider public.