Thailand’s Central group, via a joint venture partnership with Austria’s Signa, has acquired Swiss department store chain Globus and its real estate assets for some $1.03 billion.
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Former Globus owner, Migros-Genossenschafts-Bund (MGB), offloaded the luxury retailer to the Thai-Swiss partnership, per reports, as Central Group looks to extend its mall reach into Europe.
The acquisition includes retail projects under development in Dusseldorf, Germany, and Vienna, Austria.
“The transaction includes the purchase of prime Swiss properties and a hotel, with a value of over 1 billion Swiss francs,” said Central Group executive chairman, Tos Chirathivat.
Thaliand’s largest retail company, the Central Group — controlled by the Chrathivat family — also jointly owns Germany’s KaDeWe Group, Italy’s Rinascente and Denmark’s Illum with Signa, with Globus its latest mall addition.
“Since entering Europe in 2011 with the Rinascente acquisition, our business in Europe has grown from 200 million euros ($221 million) to [a] projected 2 billion euros [this year],” the Thai retailer said in a statement.
As part of deal, Central Group Europe chief executive officer Vittorio Raddice has been appointed head of Globus’ operations. Thomas Herbert, the current CEO of Globus, will become a member of the board, while Franco Savastano, deputy CEO, will take over daily operations as CEO.
“As a historical Swiss brand, Globus is a perfect fit for our European alliance with strong local presence and international recognition,” said Raddice.
The deal is subject to approval from European competition authorities and is expected to close in mid-2020.
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The news comes as Central Group prepares to list its department store arm Central Retail in Bangkok. The move is set to be Thailand’s biggest IPO to-date, with trading expected to commence in late February.