Swedish shopfitting company Itab has announced the acquisition of its French competitor HMY. The purchase price considered is 320 million Euros on a cash and debt free basis. Itab is offering HMY shareholders a corresponding put option. The company intends to finance the transaction with long-term loans combined with the issue of new shares.
With a recent annual turnover of more than 540 million Euros, HMY is almost as strong as Itab, which had a turnover of over 566 million Euros in 2023. The CEOs of both companies emphasised in a press release that the merger of the two equally strong partners will benefit both customers and employees. The aim is to achieve greater scale and more market weight to position themselves as market leaders in the shopfitting segment.
The Retail Optimiser spoke with Klaus Schmid, Senior Vice President at Itab Group, about his assessment and expectations for the acquisition. ”Above all, we will be able to better support large, international projects,“ he explains and continues: “When two leading companies like Itab and HMY come together, not only do they expand their expertise and competences, but also their production capacities. I expect that we will work even more efficiently together. We will also be able to achieve better prices for raw materials.”
Geographical focus areas complement each other
Schmid explains that the two companies complement each other perfectly. Itab is strong in all Scandinavian countries, Central and Eastern Europe as well as the UK. HMY has a large customer base in France and Spain. This includes important players such as Carrefour, Auchan, E.Leclerc, Sonae, Mercadona and Sephora. The regional focus also complements each other in South America. Itab, for example, is more strongly represented in Argentina, HMY in Brazil.
HMY is contributing large production sites in France, Spain and Turkey as well as in Brazil and Mexico to the joint venture. The factory in Mexico will be particularly important for success in the US market, as goods can be imported duty-free from there.
Tapping into new market segments
The two companies will also have a broader portfolio of solutions at their disposal. ”This offers opportunities for cross-selling to existing customers,“ hopes Klaus Schmid. ”The move also opens the door to new market segments for Itab,“ he adds. For example, HMY is more strongly represented in brand manufacturers with their own branch network. HMY is also already established in the automotive sector. For example, the company supports Volkswagen sales outlets in France with digital solutions.
The offerings also complement each other in terms of technology. Both companies provide different solutions for checkout furniture and the integration of self-checkout technologies. Itab also has its own sensor technology and access systems.
Quick closing expected
The takeover is expected to be finalised in the fourth quarter of this year, at the latest in the first quarter of 2025. The companies are waiting for approval from the authorities.
