A corresponding transaction was agreed upon by the two partners Wednesday morning in Hamburg. In its last financial year (01.03.05
– 28.02.06), Max Bahr achieved net sales of Euro 726 million at 77 locations with a total sales area of 513,249 m?. Together
with Max Bahr, the Praktiker Group will achieve annual sales of almost Euro 4 billion.
What are the results from the acquisition:
• Takeover strengthens Praktiker Group’s market position
• Two-brand strategy covers both sides of the home improvements sector
• Acquisition allows sustained improvement of results
“Max Bahr is a renowned home improvements specialist offering premium quality products and service,” according to Wolfgang
Werner, CEO of the Praktiker Bau- und Heimwerkermarkte Holding AG. “By taking over the operational business of Max Bahr, we
are acquiring a well-run company that will help us to further develop our market position.”
Two-brand strategy covers both sides of the home improvements sector
Praktiker intends to continue operating Max Bahr as a service-orientated premium brand. “Max Bahr,” says Wolfgang Werner,
“is the ideal complement to the strategic alignment of Praktiker which will be more clearly positioned as price-aggressive
and discount-orientated. This will be the consequence of the planned implementation of our new Easy-to-shop concept, which
has been designed primarily for medium-sized stores. In contrast, Max Bahr has the competence for managing large stores and
has already established itself as a premium concept. This gives us a unique position on the German home improvements market
by appealing to a much broader range of customers. Our innovative two-brand strategy will enable us to reach additional target
groups, and thus cover the market both efficiently and effectively. Thus we do not only gain in size, but also a new quality
of our offers. Currently, no competitor on the market can match that.”
Significant reinforcement of store network
Regionally, Max Bahr is the almost perfect addition to Praktiker. Moreover, it facilitates an improved location policy. Wolfgang
Werner: “The takeover opens up further growth perspectives on Germany’s DIY market to us. The acquisition not only gives us
a denser network of subsidiaries, but also enables us to optimise it. By transforming individual markets following the respective
core competencies of the brand, we are able to strengthen the positioning of our brands.”
Acquisition to lead to sustained improvement of results
The takeover also brings with it potential for improvements in procurement, logistics and administration. Wolfgang Werner:
“We have different strengths, and there is much we can learn from each other. I am confident that we will be able to use our
future advantages of scale to greater efficiency and profitability. And we are confident that the acquisition of Max Bahr
will make a positive contribution to our profits already in the first full financial year.”
Improved strategic position
The acquisition of Max Bahr clearly improves Praktiker’s strategic position. As Wolfgang Werner explains: “Our strategy is
based on three pillars”, which are:
• International expansion: We will continue our aggressive expansion into attractive East European markets as planned. This
acquisition will not have any effect on value-orientated growth abroad. Our target remains unchanged at 15 to 20 new locations
per year medium term.
• Two-brand strategy:The two-brand strategy will help assure sustained improvement of our competitive position.
• Easy-to-shop: After the opening of our six pilot stores in July, the Easy-to-shop concept shall be rolled out in 2007.
The Max Bahr real estate was acquired by Moor Park Holdings Luxembourg Sarl.
The acquisition of Max Bahr is still subject to clearance by the Federal Cartel Office. Concerning the acquisition price both
parties agreed on confidentiality.
Praktiker Bau- und Heimwerkermarkte Holding AG was advised by JP Morgan.
