| Name : | AB Lindex |
|---|---|
| Date of first investment: | September 1993 |
| Location : | Sweden |
| Amount invested : | € 5.4m |
| Activity : | Retailer of women and children's clothing |
| Type/Stage : | MBO |
| Revenues : | (1994) € 237m |
| Transaction size : | € 86.8m |
| Board members : | None - third party appointed |
| Date of realisation : | April 1995 |
The Business
AB Lindex is a leading retailer in Scandinavia in women’s underwear and apparel and one of the leading retailers of children’s clothing. At the time of the Fund’s investment it owned approximately 200 stores, including a loss-making menswear retail chain, and was engaged in the transition to a new, centralised, computerised purchasing and distribution system.
The Management
Hans Johanssen and Leif Larssen had recently joined the business with a highly focussed strategy to improve performance by the expansion of the existing core business and rationalisation of the purchasing and distribution systems.
Strategic Development
The strategy planned for the business at the time of the Fund’s involvement, which was subsequently successfully undertaken, included selling the loss-making menswear chain, accelerating new store openings and refurbishments, the launch of new design collections, increasing shelf space allocated to children’s clothing and completing the new computerised purchasing and distribution project. AB Lindex was floated on the Stockholm Stock Exchange in April 1995, at which time the Fund disposed of its entire shareholding, producing an investment IRR of 133.1%.
