Homebase

Homebase is one of the largest DIY retail brands in the UK. At exit, it was operating about 300 stores, generating sales of more than €2bn. Find out how Permira backed its strategy for growth and repositioned the business as a high quality brand in March 2001.

UK

Realised

Together we achieved

  • The repositioning of Homebase as a high-quality, local decorating and furnishings business
  • A complete strategy change for Homebase to focus on smaller stores. We worked with the management team to introduce new product ranges and install mezzanine floors to intensify the use of sales space

This was accomplished by

  • Appointing a new management team to drive the renewed vision of the group, including the Chairman, Chief Executive and CFO
  • Continuing to evolve its product offering and streamline its product ranges. Its online offering was rationalised, direct sourcing from Asia was accelerated and product availability was improved
  • Reorganising the head office functions and the rationalisation of the store portfolio

www.homebase.com

The metrics

€822m

Transaction value

2001

Acquisition year

6.1x

ROI

2002

Exit year

Trade sale

Exit type

EBITDA Growth

2001 - €105m
2003 - €191m