Page 22 - Sphere No.10 (Dec 2003)

C O V E R S T O R Y
SPHERE
1220
The acquisition took place in an atmosphere of great friendship
and cooperation between shareholders and management on both
sides.The Kruidvat management remained in place and the business
operations didn’t miss a beat.
“We do all deals ourselves with virtually no outside help from
merchant bankers and the like,” says Wade. “For us, it is a personal
thing, which is unusual. In a deal of this size, ‘emotionally detached
middlemen’ are normally involved. Forming relationships is about
two things — money and the relationship you create with the other
party. If you don’t have the right relationship, then the money
becomes a bit of a bind.”
BIG AND BEAUTIFUL
With more than 1,900 outlets and a strong reputation in its home
markets, Kruidvat represented a giant leap forward for an Asian health
& beauty retailer looking to expand.
The Dutch company had built an impressive family of five brands
under its management. Besides Kruidvat, these included leading
UK retailer Superdrug with 700 stores, former competitor
Trekpleister, the Rossmann chain in Poland, Hungary and the
Czech Republic and the ICI PARIS XL chain of perfumeries in
Belgium and the Netherlands.
With one prudent acquisition, ASW had expanded into tried
and tested markets via strong existing brands, positioning the
Group as the biggest health & beauty retailer outside the US.
Mr Wade concedes that when the managers from the various
countries get together these days it’s a bit like a meeting of the
United Nations.
Kruidvat was founded as a grocery company in 1928 and today is the undisputed market leader in the health & beauty sector in The Netherlands and
a leading player in Belgium. It was acquired by A.S.Watson in 2002. Kruidvat employs around 8,000 people in more than 700 outlets catering to over two
million customers per week. It also retails fast-moving non-cosmetic items such as low-priced CDs, toys, household items and photo services.
8 high-street chains …