Baugur Group

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Baugur Group hf <tr><td colspan="2" style="text-align:center; padding:16px 0 16px 0;"> </td></tr>
Type	Private
Founded	Reykjavík, Iceland (1998)
Headquarters	Reykjavík, Iceland <tr><th style="text-align:right; padding-right:0.75em;">Key people</th><td>Jón Ásgeir Jóhannesson, CEO</td></tr><tr><th style="text-align:right; padding-right:0.75em;">Industry</th><td>Retailer, Real estate</td></tr><tr><th style="text-align:right; padding-right:0.75em;">Products</th><td>Retailer, Investment company</td></tr><tr><th style="text-align:right; padding-right:0.75em;">Website</th><td>http://www.baugur.is</td></tr>

Baugur Group (['pøyɣʏr] in Icelandic, otherwise often ['baʊgə(ɹ)]) is an Icelandic investment company.

The name Baugur is pronounced, in Icelandic as ['bøykʏr]; however, outside the country, it is widely pronounced as ['baʊgə(ɹ)].

1 History
2 Baugur changes to Baugur Group
3 Baugur Group delisted from ICEX
4 Baugur Companies
5 Goldsmiths jewellery
6 Recent acquisitions
7 Board of directors
8 External links

[edit] History

Jón Ásgeir Jóhannesson, President & CEO of Baugur Group, fresh out of college,set up his first Bónus supermarket with his father Jóhannes Jónsson in 1989. The company was started with one store in Reykjavík, based on the proposition of offering customers value for money. The company grew quickly and within three years was operating several supermarkets in Iceland. In 1992, the owners of Hagkaup, the leading domestic retailer, acquired 50% of shares in Bonus, and in 1993, Hagkaup and Bónus established a joint purchasing company named Baugur.

Hagkaup was established over 50 years ago and, as a retailing pioneer, opened both supermarkets and department stores in Iceland. Hagkaup and Bonus merged as Baugur in 1998 and Johannesson became the company's President and CEO. Baugur was listed on Icelandic Stock Exchange the same year.

In 1999, Baugur signed franchise agreements with The Arcadia Group and Debenhams for Scandinavia and today Hagar, (formerly Baugur-Iceland) runs several Topshop and Miss Selfridge stores in Iceland and Sweden as well as three Debenhams stores.

The company grew up to be the largest in the retail sector in Iceland. Baugur Group has continued to grow and flourish under the guidance of Mr. Jóhannesson, and at the end of the year 2003, no other privately owned Icelandic company, in addition to being the largest in Iceland, had larger operations abroad.

[edit] Baugur changes to Baugur Group

In 2002, proposals were approved concerning a change in the name of Baugur hf. to Baugur Group hf. and changes to the company's organizational structure.

Baugur hf. was divided into three independent profit centres: Baugur-Iceland, Bonus Stores Inc., and Baugur-ID. Baugur hf. changed its name to Baugur Group hf. and became a holding company.

[edit] Baugur Group delisted from ICEX

In May 2003, a redemption offer worth 10.85 Icelandic krónur (£0.09) was made by Mundur, for the outstanding stock—Mundur holding company is backed by Gaumur, KB Banki, an Icelandic investment bank; and two private investors—and in July 2003, Baugur Group was delisted from the Iceland Stock Exchange.

The year 2003 was a milestone in Baugur Group's foreign operations. At the beginning of the year, Baugur Group held shares in a few listed companies in Britain, whereas, at the end of the year, no other Icelandic company had as extensive operations outside of Iceland.

Briefly, it can be said that Baugur Group's investment activities in Britain can be split into two categories. On one hand, Baugur Group continued to invest in listed companies that are regarded to have better futures, either because their current management is in the process of improving the company's operation, or because new shareholders are expected to step in to instigate improvement. Among the companies, which Baugur Group has invested in on these premises are the Big Food Group, House of Fraser, and Somerfield.

On the other hand, Baugur Group has formed a strategy to take part in management takeovers. These companies control strong brand names and are considered to have substantial opportunities for growth, show a net profit, and management has shown and proven its ability to succeed. During the year 2003, Baugur Group acquired three such companies: Hamleys, Oasis, and Julian Graves.

In May 2004, Baugur Group, along with other investors, acquired the majority in the British jewellery chain Goldsmiths, in cooperation with the company's management, for the amount of ISK 14.4 billion,

[edit] Baugur Companies

Hagar

Bónus supermarket
Hagkaup supermarket
10-11 convenience store
Útilíf sports shop
Debenhams department store
Topshop boutique
Miss Selfridge boutique
Dótabúðin toyshop

Baugur

Stoðir asset management (49.6%)
Húsasmiðjan home improvement store (45%)
Tæknival IT company
SMS supermarket, Faroe Islands
Kaldbakur investment company (24.76%)
365 media corporation (30%)
Smáralind shopping mall (20%)
Runs Allianz in Iceland.
Dagsbrún

Foreign Investments

Woolworths Group plc (7%[1]) general merchandise business
Goldsmiths jeweller
Julian Graves health food shop
Big Food Group (Booker Cash & Carry plc and Iceland) cash-and-carry and supermarket.
Oasis boutique
Karen Millen boutique
Hamleys toyshop
Somerfield supermarket (3%) - take over bid made February 2005, bid withdrawn July 2005
Coast [2] boutique
Whistles boutique
MK One value boutique
Magasin du Nord department store (83% with Straumur Investment Bank and B2B Holdings)
Illum department store
Keops Real estate(30%)
Merlin Electronic appliances
Woodward Foodservice caterer
Shoe Studio Group shoe retailer

[edit] Goldsmiths jewellery

Goldsmiths, which was established in Newcastle upon Tyne in the year 1778, operates 165 jewellery stores in Britain and is the second largest in the country in its sector. Goldsmiths is the largest retailer of Rolex, Cartier, Omega, Tag Heuer and Gucci in Britain. Goldsmiths was delisted from the stock exchange in 1999 in a management take-over in June 2004.

[edit] Recent acquisitions

In June 2004, the founders of Karen Millen agreed to sell the business to the Oasis Group (controlled by Baugur Group) in a deal valued at £120 million creating a leading womenswear retailer with four strong brands—Oasis, Coast, Karen Millen, and Whistles—with total sales of over £350 million and 550 stores.

Oasis is aimed at independent, fashion conscious 18-30 year old women and operates from 281 outlets across 14 countries including the UK and Ireland; Coast is a destination brand for women's special occasion clothes with 135 outlets; Karen Millen has a niche position away from the mass market, bordering on the designer brands; and Whistles has more-grown-up styling and quirkier taste than the rest of the high street.

On the 14th November 2004, Baugur bought with investment the value boutique MK One with 175 stores in the UK.

Later, the Oasis Group changed it name to Mosaic, listed on the ICEX.

On the 25th August 2006, the takeover of House of Fraser by Baugur Group was confirmed. Baugur reportedly payed £351m for the company.