As of 1 May 2019, a majority stake in Geert Grüppen GmbH & Co. KG (Grüppen) has been taken over by the Mayrose Gruppe (Mayrose), a regional competitor. Grüppen was a builders’ merchant chain with three locations in the County of Bentheim, located in the German-Dutch border region.
Working together with insolvency administrator Dr Moritz Sponagel (from Hanover-based law firm Sponagel Rechtsanwälte) and restructuring consultant Marcus Ebelt (from Kamen-based Beckmann Unternehmensentwicklung GmbH), FalkenSteg was able to keep part of the Grüppen Group trading via an asset deal. On 1 May, Mayrose acquired all the insolvent business’ assets from its three premises and ensured continued employment for staff at the company’s Uelsen branch. As part of the transaction on 1 June 2019, Mayrose acquired the former shareholders’ property in the town of Uelsen, which has a floor space of almost 20,000 m².
Grüppen operated three builders’ merchant branches in Emlichheim, Nordhorn and Uelsen, employing around 100 people. In the 2018 financial year, it generated approximately €21 million in total revenue. The headquarters in Emlichheim and the Nordhorn branch were closed during the insolvency and are likely to be used for different purposes in the future, while Mayrose will consolidate the firm’s business activities at the Uelsen site. As well as stocking a wide range of building materials, Grüppen also sold complementary product groups such as DIY products, fireplaces and barbecues in a dedicated gallery, as well as the region’s largest selection of fishing equipment at a bricks-and-mortar store. In addition to its retail business, Grüppen also provided complementary services, such as custom-made items from its own carpentry shop and window and door installation.
Despite healthy incoming orders in the construction industry, Grüppen had seen a decline in sales and profits in recent years. Insolvency was ultimately brought on by strong competition for major orders, a price-sensitive local clientèle, low flat-rate freight charges and inefficient use of existing resources – including personnel and inventory at the three locations. After Grüppen filed for insolvency on 3 December 2018, Dr Moritz Sponagel from Sponagel Rechtsanwälte in Hanover was appointed as insolvency administrator.
Mayrose is a regional builders’ merchant chain headquartered in the town of Meppen, operating seven branches in the Emsland and Steinfurt districts. The acquisition of the Uelsen site enabled Mayrose to expand its catchment area into the County of Bentheim. Mayrose intends to use the existing, stable organisational structures to unlock the synergy and potential that exists for administration, purchasing and IT.
The insolvency administrator gave FalkenSteg’s Corporate Finance team, spearheaded by Jochen Wierz and Enis Lütkenhöner, an exclusive mandate to serve as financial advisor.
Dr. Sponagel Rechtsanwälte
Herr RA Dr. Moritz Sponagel
Herr RA Marc Heidenreich
FalkenSteg Corporate Finance
Herr Jochen Wierz (Partner)
Herr Enis Lütkenhöner (Associate)
Herr Martin Bjelanovic (Analyst)
Beckmann Unternehmensentwicklung GmbH
Herr Marcus Ebelt (CEO)