Mobilux, a joint venture owned by the American investment fund Clayton, Dubilier & Rice and WM Holding – an affiliated company of XXXLutz, a shareholder of the But Group, has announced the signing of an agreement to acquire Conforama France and related real estate assets.
Conforama France, the French furniture retailer controlled by the Steinhoff group since 2011, has seen its financial difficulties worsen due to the health measures taken during the Covid-19 epidemic. The takeover by Mobilux will ensure the future of the French furniture retailer by implementing an ambitious business recovery plan.
In this respect, Conforama France was granted a €100 million State-Guaranteed Loan (PGE). A second PGE of €200 million euros will be issued upon final completion of the transaction.
The transaction is subject to customary approvals by the French competition authority and is expected to close in the third quarter of 2020.
Latham & Watkins advised the lenders as part of the arrangement of the PGEs with a team led by Paris finance partner Xavier Farde with counsel Carla-Sophie Imperadeiro.