Advent buys Takko from Permira

European buyout firm Permira has sold Takko, a German fashion discount chain, to Advent International for €770 million. The deal comes as Permira looks to sell another retail asset – UK high street chain New Look.

Global buyout firm Advent International has bought European fashion discount retailer Takko from Permira for €770 million ($1 billion).

Permira originally bought Takko in March 2000 from German retail business Tengelmann Warenhandelsgesellschaft for €604 million. Under Permira’s ownership, Takko’s sales have nearly doubled, while its total number of stores has more than doubled.

Headquartered in Germany, Takko operates 1,059 stores, 836 of which are located in Germany, with others in Austria, the Czech Republic, the Netherlands, Hungary and Slovakia. The business predicts sales of €800 million for 2007.

Advent’s previous investments in the retail sector include French discount chain Stokomani, which it bought in April, and Mexico’s biggest discount retailer Melody, which it bought in June. Since its inception in 1984, Advent has raised $10 billion of private equity capital and completed more than 200 deals.

Permira is currently selling another of its retail assets – UK high street fashion chain New Look. It is rumoured that Permira and Apax Partners could make up to £1.3 billion from the sale of the business that was bought in 2004 for £699 million. Private equity suitors for New Look are thought to include TPG and Warburg Pincus.