With 1,473 stores in seven European countries and a staff of 46,000 employees, the Dutch retailer Action (turnover of €4.2 billion in 2018, up by 5.4% in the 10 months tao late October 2019) has just been revalued to €10.25 billion in the accounts of British fund 3i Capital, the majority shareholder. “This valuation has been sharply revised up in the last twelve months”, said the British investment fund, without giving further details. In parallel, the discount retailer Action has completed a financial restructuring, which resulted in a stronger influence of 3i. The British fund now controls nearly 80% of the shares in Action.
In 2011, 3i invested €330 million to take almost half of Action’s capital. At that time, the retailer posted annual revenue of €700 million. According to Frank Quix, Managing Director of Q&A Research Consultancy in Amersfoort and Chairman of the Ebeltoft Group, “Action’s valuation currently reaches 18 times its EBITDA (Earnings before Interest, Taxes, Depreciation and Amortization). This is extremely high compared to other retailers which trade at 3 to 4 times their EBITDA”. According to the Financial Times, the British investor 3i would have multiplied its investment value by 31 times since 2011, when it became a shareholder in Action.
By 2023, the fast-growing Action aims to almost double the store footprint, and to increase sales by 100%. The firm expects to open 312 stores per year over the next 4 years and targets an annual turnover of €9 billion by 2023. As a long-term investor in the company, 3i plans to launch Action in Central and Southern Europe.