DGAP-News

Adler Modemärkte AG: ADLER Concludes KRESSNER Acquisition

DGAP-News: Adler Modemärkte AG / Key word(s): Acquisition
Adler Modemärkte AG: ADLER Concludes KRESSNER Acquisition

13.01.2015 / 10:00

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Press Release from Adler Modemärkte AG

Closing Complete

ADLER Concludes KRESSNER Acquisition
Eight Attractive Locations Bolster Network of Stores

Haibach (near Aschaffenburg), 13 January 2015. Adler Modemärkte AG - one
of Germany's largest textile retailers - successfully concluded an
agreement on 12 January 2015 to acquire 100% of the shares in
Bekleidungshaus Kressner GmbH & Co. KG as well as the managing general
partner Kressner GmbH from REWE Beteiligungs-Holding National GmbH and the
Sanktjohanser family after obtaining approval from the anti-trust
authorities. The parties agreed to keep confidential the terms and
conditions.

The Kressner stores boast attractive locations and dovetail advantageously
with ADLER's expansion strategy. With the exception of the Kredenbach store
(which will be closed at the end of 2015), all remaining eight stores will
be transitioned prior to the start of next season in March and will be
operated under the ADLER brand. With these additions, the store network
will comprise 178 stores.

"We will continue to consistently implement our expansion strategy. The
successful integration of Kressner is just one more step down this path. In
addition, we will continue to grow the number of our own stores and
increase our online sales by sharpening our focus on the customer", said
ADLER CEO Lothar Schäfer.

The acquisition of Kressner represents an enormous potential for ADLER.
Kressner currently generates approximately 70% of its revenue from its
"Kressner Friends" customer loyalty card programme, which was introduced by
ADLER employees in 2009. Currently, approximately 100,000 customers are
enrolled in the customer loyalty card programme, representing an enormous
potential for ADLER. By acquiring another mom-and-pop business in Kressner,
ADLER has also gained an attractive portfolio of stores which are
well-established within the target group and have large amounts of retail
space and thus are expected to generate a high level revenue. ADLER will
assume the lease agreements, the terms and conditions of which are
significantly more favourable than current arm's length agreements. This
will further increase the profitability of the stores. Often located in
direct proximity to REWE stores and thus associated with a high number of
potential new customers, the Kressner stores are even more attractive
because the frequency of potential customers is significantly higher than