Dentons has advised Hungary’s Wallis Group and Praktiker’s managing director Karl-Heinz Keth in their respective purchase of the Hungarian retail operations and operating company of Praktiker, one of the leading DIY and home improvement store chains in Hungary. The existing Praktiker operation in Hungary, with 19 locations and 1,100 employees, will continue to trade under the Praktiker brand.

The transaction concludes the orderly disposal of the seven Praktiker divisions outside Germany following the insolvency of the German parent in 2013. Operations in the Praktiker store chain in Hungary have continued smoothly throughout the process.

The buyers have agreed to operate Praktiker in the future in a joint company, where Wallis Group shall become the majority owner. This second stage of the transaction is subject to approval by the Hungarian Competition Authority.

“We are very proud to have had the opportunity to support Wallis Group in this landmark transaction,” commented Dentons Partner Andreas Köhler, legacy co-head of the Firm's Global German Practice. “This deal has helped secure some 1,100 jobs in Hungary, and also ensures the continuing existence of one of Hungary’s best-known retail brands."

Gábor Vitan, M&A director at Wallis Group, said: “The team at Dentons delivered a high quality and full service cross-border legal solution to assist us in the smooth acquisition of this significant retail network, and we were delighted with our partnership with them.”

The Dentons Budapest team on the deal was led by Partner Andreas Köhler, supported by Associates Gábor M. Tóth, András Peisch and Eszter Fodor.