DEBT – The LFPI Group exits HEMA’s debt

The LFPI Group exited HEMA’s debt this summer as part of the refinancing organized by the Dutch distributor. HEMA is part of the Lion Capital investment fund portfolio.

HEMA, based in Amsterdam, was established as a chain of department stores in 1926. The company operates a network of over 600 stores in the Netherlands, Belgium, Germany, Luxembourg and France and also sells products in line. HEMA markets 15 categories of HEMA own-branded products including clothing, home, personal care and food products. The company employs more than 5600 people and achieved a turnover of more than € 1,1 billion for the 2013/2014 financial year.

LFPI Groupe initially participated in the financing of the mezzanine debt in October 2008 with the LFPI Mezzanine fund and subsequently made additional investments in 2011 with various Group vehicles. Overall, the LFPI Group held around one third of the mezzanine debt before the refinancing, resulting in an annual return of over 20% and more than twice the multiple of the sale transaction on all of the debt.