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Consumer Products

INNOVATIVE TAX STRUCTURES IN CROSS-BORDER JOINT VENTURE BETWEEN PIKOLIN AND STEINHOFF

In a market-moving deal in the consumer products sector, furniture giant Steinhoff International has formed a strategic alliance with French and Spanish bedding leader, Pikolin Group.

The transaction saw Steinhoff – Europe’s second largest furniture distributor – acquire 50% of Pikolin’s French subsidiary, Cofel.

A CMS Paris team led by partner Hubert Bresson advised Pikolin on the transaction’s innovative tax structuring.

The tax issues were complex for Pikolin. Even though it is a Spanish company, the capital gain was taxable in France where its subsidiary is based.
Hubert Bresson, Partner, CMS Paris

The deal will help consolidate Pikolin's international presence and provide entry into new European markets.

Steinhoff International, meanwhile, gains access to the Pikolin Group’s experience and recognised know-how in the bedding sector and an opportunity to offer a wider range of products in Europe.

The deal reached financial close last summer.

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