The Commercial Court in Meaux has ruled today (23 May 2016) that investment group Perceva has won the race to acquire French bedding group Cauval Industries, beating off competition from three other suitors, including Steinhoff.
According to French sources, South African-based conglomerate, Steinhoff reportedly submitted an offer of €76.2m and proposed to buy five of Cauval’s six bedding facilities, but found its offer quickly discarded as it was the lowest bidder in terms of jobs – stating it would save just over 950.
Perceva’s proposal was more favourable and now it has secured the deal, the company plans to invest €70m, including €40m in equity – as well as retaining 1,445 jobs from 1,660 and all of its seven sites, which should boost production before the start of the high season of autumn bedding.
Speaking within the French press, Mohamed El Rhazi, secretary of the Cauval Group Committee, said: “This is very good news. We will lose 215 jobs, whereas, given the state of the group, it could have been half.”
Cauval, the owner of Dunlopillo brands Treca and Simmons, was placed into receivership in February 2016, and received two other bids from Portuguese furniture firm Aquinos and another investment group Verdoso, before its fate was assigned to French-based Perceva.
Steinhoff International, which has recently lost out to Argos owner Home Retail to Wesfarmers, is also uncertain whether it can pull off the Darty acquisition as rival Fnac has submitted a higher offer.
Steinhoff has more recently been linked with Australian home and electrical retailer The Good Guys, with a potential deal that would rival home goods store Harvey Norman, by linking its already established Australian firm Freedom Furniture with The Good Guys. (Read story).