Iceland based Baugur Group acquires Danish department store Illum

The Icelandic investment company Baugur Group has acquired the Copenhagen department store Illum from investment bank Merrill Lynch for an undisclosed sum

The Icelandic investment company Baugur Group has acquired the Danish department store Illum, located in central Copenhagen, from investment bank Merrill Lynch for an undisclosed sum. Baugur Group has previously acquired the shares of Denmark's Wessel & Vett, which runs the department stores Magasin, and two weeks ago the Iceland group acquired a 30% stake in the Danish property investment company Keops for DKK 564 mn (USD 90.2 mn).

Skarphedinn Berg Steinarsson, managing director of Baugur Group says the company aims to make Illum into the leading store in Copenhagen. Illum will have a more exclusive profile with top designer brands, while Magasin will be a more mainstream department store. Baugur Group itself has a broad range of international brands which it is considering introducing into Illum and Magasin.

Patricia Burnett, managing director of Illum, says the takeover is very good news since the new owners are retailers who can supply expertise. After Merill Lynch acquired Illum in the autumn 2003, the department store has been making steady progress after years of loss. In the last 17 months, Illum has generated revenues of DKK 148 mn (USD 23.7 mn), and profits of just over DKK 8 mn (USD 1.3 mn). In the last four months sales have increased by 11%. The news is reported by national daily newspaper Berlingske Tidende.

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