PARIS, March 15 |
(Reuters) - Economic growth is
flatlining in Europe, household spending is in a funk and
retailers are cutting prices - the perfect time to invest in
consumer brands that can defy the downturn, professional
golfer-turned-banker John Penning says.The 39-year-old, who traded in his clubs for a life of finance after mingling with bankers on the putting green, has made his latest private-equity bet in the euro zone, taking over a chain of warehouse stores selling second-hand furniture and electrical goods mainly in France, the Benelux countries and Spain.
Penning's Saphir Capital bought Troc, which he describes as a "second-hand IKEA," for under 100 million euros ($130 million). The investment is small compared with the world's biggest furniture retailer, which made more than 200 times that amount in 2010 sales.
But the deal is part of a wider strategy for Penning, who also owns a stake in Frey - a French developer of retail parks in France and Spain - and is looking at other opportunities in the French consumer goods sector.
"I'm still excited about the euro...What is very good is strong brands," Penning told Reuters at an event to present Troc's strategy, which involves opening new stores and increasing the amount of brand-new goods sold while still retaining a primary foothold in second-hand products.
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