The Quotes are Powered By Forexpros, the Forex, Futures, and Stock Markets Portal.

Over priced, IKEA can't find a buyer for its optical company, Synsam

Tuesday, 11 December 2012
Investment company, Alipes, funded by the Inter Ikea and Ikano, begin a sales process for optics optician chain, a deal that could fetch more than Skr4 billion. But the venture capital firms is failing to find a buyer for the optics optician chain. The reason: the price is too high.

The Swedish business daily Dagens Industri reports that Synsam has been prepared for sale throughout the fall. In addition, in the beginning of the sales process, there was high interest in the chain, with its 400 stores in Sweden, Norway and Denmark, interest form potential buyers was very large.

But after a while, several bidders have dropped out and it now remains unclear whether there is any potential buyers. The Swedish private equity firms Nordic Capital, EQT and Ratos dropped out early. Recently, there were only French PAI and U.S. Bain Capital which remains as speculators. And now, everything indicates that these two have got cold feet.

According to Dagens Industri, the starting bid from Ikea side was around Skr4 billion. The potential buyers think that it is just too much money. Maximum Skr3.5 billion is the counteroffer.
"The deal could still go through, but then Alipes has to bring down the price, "said a source the paper.

A deal would mean Alipes first successful sales since its inception five years ago.
Synsam expected a turnover of Skr 2.3 billion and achieve a profit before amortization of Skr480 million.
According to Dagens Industri there is doubt, however if potential buyers for Synsam would be able to maintain such profit margins. There are also questions about the Swedish market.
Synsam main competitors are British Specsavers and Synoptics, owned by the Dutch investment company HAL Trust.
By Scancomark.com Team

We welcome your contribution. Did you find anything wrong with this article? Do you want to contribute to our news network? Do have a news tip or assist us with a correction