Hema to be sold to Jumbo owner and Dutch investment firm

A preliminary agreement was reached for department store chain Hema to be sold to the Van Eerd family, which owns supermarket chain Jumbo, and Dutch investor Parcom.

The Van Eerd family's investment vehicle, Mississippi Ventures, will become a 50-percent owner in Hema, with Parcom taking the other half, according to a statement from Hema. The final value of the deal was estimated at 440 million euros, but could rise to up to 464 million subject to adjustments and the final closing date.

The potential owners are seeking commitments of 380 million euros in financing from commercial lenders to close the deal. The parties entered into an exclusivity period ending in mid-December, and any agreement would need to be finalized by 1 May 2021 at which the parties could pull out of talks.

"Both parties have Dutch roots and have expressed a strong commitment to HEMA’s strategy, management and employees, as well as our unique brand and heritage," said Tjeerd Jegen, the CEO of the retailer. "During the process they have shown great understanding for our business and the challenges we currently face due to Covid-19. They believe in the resilience of our business and share our belief in the strengths of HEMA."

Hema is currently owned by a group of the chain's creditors, which acquired the chain earlier this year after a conflict with then owner Marcel Boekhoorn. The creditors claimed ownership of Hema after Boekhoorn failed to meet the payment obligations.

What this new acquisition will mean for the Hema stores and its employees, is not yet clear.