FRANKFURT (Thomson Financial) - German mail-order company Neckermann will return to profitability within two years, Sun Capital Partners partner Michael Kalb told Frankfurter Allgemeine Zeitung in an interview.
Sun Capital is buying 51 pct of Neckermann from Arcandor AG for an undisclosed sum, and Kalb said he expects the deal to close by the end of this month, according to the newspaper.
While Arcandor will retain 49 pct of Neckermann, Sun Capital will control the business, Kalb said.
Sun Capital plans to continue Neckermann's conversion to an online mail-order company rather than a catalogue-based one, after which the unit will expand its eastern European operations to tap into faster growth, he said.
'We will surely keep Neckermann for a number of years,' Kalb said.
'All options including a sale and an initial public offering are possible for our eventual exit.' maria.sheahan@thomson.com mas/lht COPYRIGHT Copyright Thomson Financial News Limited 2008. All rights reserved. The copying, republication or redistribution of Thomson Financial News Content, including by framing or similar means, is expressly prohibited without the prior written consent of Thomson Financial News.