windeln.de announces closing of the sale of Feedo to ags 92
Munich, August 29, 2018: windeln.de SE (“windeln.de” or “Group”), one of the leading online retailers for baby and toddler products in Europe and for customers in China, announces that, further to its announcement of July 20, 2018, it closed the sale of its Eastern European subsidiary Feedo Sp. z o.o. and its subsidiary (“Feedo”) to the Czech wholesaler and retailer for baby and toddler products ags 92 s.r.o. (“ags”) on August 24, 2018.
The sale of the stand-alone business Feedo is part of the Group´s previously announced efficiency and profitability measures. Through the divestiture of Feedo, windeln.de benefits from the deconsolidation of a loss-making and cash flow negative subsidiary (2017: adjusted EBIT of EUR -3.4 million, operating cash flow of EUR -3.3 million) as well as from the resulting Group-wide fully integrated infrastructure with all shops running on the same technical platform. As part of the restructuring measures, windeln.de announced to reduce headcount of the Group to approx. 250 active full-time equivalents (FTEs) until the end of the year. With 74 FTEs of Feedo and the headcount reduction already implemented at windeln.de, this target has already been reached with a total of 237 remaining FTEs for the Group, which will have positive impact on SG&A costs. In combination with the integration of the Southern European subsidiary Bebitus in October 2017, the closure of the loss-making Italian business pannolini.it in February 2018 and the stronger focus on margin and cost structure, the Group aims to reach break-even at the beginning of 2019.
Matthias Peuckert, CEO of windeln.de: “We are pleased to have closed the transaction within only a few weeks. The sale is a further step of our continuous efforts to sustainably improve the Group´s profitability, cost structure and organizational set-up. We are pushing forward the restructuring at this pace and are confident to be able to turn windeln.de into a profitable company.”
GCA Altium acted as financial advisor to windeln.de in connection with the sale of Feedo.