Troubled UK retailer of leather sofas, Land of Leather, has received a number of unsolicited expressions of interest in taking over the group. According to the company, in an announcement made on December 1, the offers are at a very preliminary stage and shareholders are being advised to take no action.
“The company has no debt and hence no requirement to pursue a sale of the business unless it realises shareholder value,” the company said.
In an interim management statement, Land of Leather said: “Conditions in the retail market are very challenging. For the three months ended November 2 2008, total sales orders declined by 47%, against very tough pre-credit crunch comparatives.”
The company has been focusing on reducing costs and conserving cash, but added: “We expect market conditions to be challenging and uncertain for the remainder of 2008 and 2009, which includes the important January sale period. As a result, the outcome for the financial year ending August 2 2009 is extremely difficult to predict.”
CapMan acquires Danfysik
Nordic alternative asset manager CapMan, through its Technology 2007 fund, is acquiring Danfysik ACP A/S (Advanced Current Products), together with the management of the company, for a transaction value of DKr64m (US$10.9m).
Danfysik ACP A/S produces high-precision current transducers and amplifiers for medical and industrial applications.
“Danfysik ACP A/S is a true hi-tech company with a unique technology and products,” said CapMan Partner Tommy Valther Hansen. “We are convinced that the company’s strong position as leader in the MRI scanner market provides a good platform for exploring new business opportunities – for instance, in the semiconductor segment – and therefore further growth in the coming years.”
EQT leads €270m deal
EQT Partners has bought an 85% shareholding in KMD, a Danish provider of IT solutions to local municipalities. The DKK 2bn (€270m) leveraged buyout was undertaken alongside ATP Private Equity Partners, which takes a minority stake in the company following the deal.
Danske Bank, Nordea, Nykredit, FIH and ATP provided a debt package to the deal, with leverage believed to account for 50% of the transaction value.
KMD was sold by Local Government Denmark.
The new owners envisage consolidating KMD’s position as one of the top IT businesses in Denmark ahead of a possible IPO in three to seven years.