Three years after 3i and Partners Group invested in Dutch retailer Action, the firm has cemented its position as the leading non-food discount retailer in the Netherlands. The investment provides a clear example of how private equity can implement an ambitious expansion plan, while providing expertise in areas such as improved product sourcing.
3i and Partners Group supported Action’s plan to expand internationally into France and helped the business incorporate environmental, social and governance best practice into the supply chain. Strong results have helped sales reach over €1bn and contributed to nearly 6,000 new jobs at the company, which now employs over 10,000 staff and has over 400 stores.
Three years of partnership with Partners Group and 3i have yielded impressive international growth for Action, as well as greater consideration on the need for sustainability in our approach.
Ronald van der Mark CEO, Action
What did the business need?
- Financial support for rapid store expansion in the Netherlands
- Capital and expertise to take Action into other European markets
- Stronger management team
- Improved product sourcing
How did private equity backing create lasting value?
- Expanded rapidly using both industry knowledge and real estate know-how
- Entered the French market with its first store in 2012 after building a strong presence in the French speaking part of Belgium
- Strengthened management teams with experienced senior retail professionals thanks to 3i’s Business Leaders Network
- Improved sustainability in supply chain management
What outcomes did private equity investment achieve?
- Added 5,800 new jobs, an 83% increase
- Increased sales by 61% to over €1bn since 2011
- Increased profitability by 80% over three years to more than €100m
- Grew store numbers by 51% to over 400