3i-backed Action secures €1.2 billion refinancing
3i-backed Action (“the Company”) has successfully syndicated and allocated a €1.2 billion all-senior debt refinancing.
3i-backed Action (“the Company”), a leading international non-food discount retailer headquartered in the Netherlands, has successfully syndicated and allocated a €1.2 billion all-senior debt refinancing, comprising a €1.125 billion term loan B and a €75 million Revolving Credit Facility. Proceeds from the term loan will be used to refinance existing debt and finance a dividend to shareholders.
As a result, 3i Group plc will receive c. £165 million proceeds, which are expected to be received by early March 2016.
Action has demonstrated significant growth since 3i, and funds managed by 3i, invested in the Company in 2011. Over the past four years, Action has expanded into France, Germany, Luxembourg and Austria and has continued its successful store roll-out programme, opening 144 stores in 2015. The Company now operates 657 single format stores in six countries and employs over 29,000 staff. This strong performance has allowed the business to rapidly de-lever and take on further financing on a prudent basis.
Robert Van Goethem, Partner and Head of Consumer, 3i Private Equity, commented:
“Action continues to perform strongly, opening 144 stores across 6 countries in 2015. The Company also continued its international expansion during the past year, by entering Luxembourg and Austria. The strong demand from investors reflects the high level of support for Action’s strategy and management team.”
Action mandated ABN AMRO, BNP Paribas, Deutsche Bank, ING, Natixis and Rabobank to arrange the debt refinancing. The transaction received strong support from a high quality syndicate of banks and funds, with both existing and new lenders committing to the facilities.
For further information, contact:
3i Group plc
Kathryn van der Kroft
Tel: +44 20 7975 3021
Notes to editors:
About 3i Group
3i is a leading international investment manager focused on mid-market Private Equity, Infrastructure and Debt Management. Our core investment markets are northern Europe and North America. For further information, please visit: www.3i.com.
Action is a fast-growing international non-food discounter with 657 stores in the Netherlands, Belgium, France, Germany, Luxembourg and Austria and over 29,000 employees. In 2014 Action realised sales of over €1.5 billion. In 2015 Action opened 144 stores. Just over a third of the c. 5,500 SKUs that Action offers in its stores are part of the standard range. The rest of the range is variable and changes rapidly. Action’s product range includes household products, office supplies, cosmetics, food & drink, toys, textiles, glassware, porcelain and crockery, seasonal items, decorative articles and DIY products. Action introduces c. 150 new articles every week.
Action is able to charge extremely low prices due to its large scale and efficient purchasing, optimal distribution and its cost-conscious company culture. Consumers appreciate these surprisingly low prices and the constantly varying range of products. Many customers visit the Action stores more than once a week. They see a visit as fun shopping, because they are constantly surprised with new items. The fact that customers recognise and appreciate this was proven by a survey conducted in 2015 among more than one million consumers in nine countries, in which Action was voted Retailer of the Year Europe 2015-2016.