Douglas boards recommend Advent's buyout bid
FRANKFURT (Reuters) - German retailer Douglas said its boards decided to recommend a 1.5 billion euro ($1.9 billion) offer for the group from private equity group Advent and it was happy with the bidder's future plans for the business.
Advent is teaming up with the retailer's founding family, including Chief Executive Henning Kreke, to offer 38 euros per share for the group, which runs drugstores, clothing, jewellery and book shops.
"The Management Board and the Supervisory Board conclude that the consideration of 38 euros per Douglas share is attractive and fair in financial terms ," the boards said in a statement on Friday.
The boards also said they were satisfied that Advent and the Kreke family - which are making the bid through the Beauty Holding Three vehicle - would back the strategy to focus on its perfume and jewellery operations, whilst working to restructure the books division.
Douglas is currently trying to reposition the Thalia bookstore division to be able to better compete with growing competition from Internet retailers and e-books.
CEO Kreke has also said he wants to expand the perfume and jewellery business internationally.
Douglas's management and supervisory board had previously declined to comment on the offer. ($1 = 0.7857 euros) (Reporting by Victoria Bryan)