Private equity firm Advent International has bought a majority stake in German fashion discount chain Takko for EUR770m (US$1.05bn) and plans to roll out 150 new stores a year.

It adds to two of Advent's recent retail transactions, including French discount retailer Stokomani in April and the June purchase of Melody, Mexico's largest discount fashion chain.

Takko managing director Arnold Mattschull said: "Advent's experience in the retail sector, and in particular value retail, as well as their track record in working with international businesses and their strong presence in Central Europe, will be a key success factor for elevating the business to the next level."

Ralf Huep, managing director of Advent International, Germany, said: "Discount fashion is one of most attractive market segments in the retail sector, performing well both in terms of overall growth rates and margin developments across Europe.

"In light of the underlying market trends and the future strategy of the company, we will further evaluate a possible IPO of the company."

Takko is being acquired from private equity group Permira in partnership with Takko's management team led by its managing director, Arnold Mattschull.

The transaction is subject to regulatory approval of the European cartel authorities and is anticipated to close in Q3 2007.

Advent said that under its ownership, Takko is set to accelerate its European expansion plan and open 150 new stores per annum. It has forecasted sales of approximately EUR800m, up 10% from financial year 2006/2007, with Central and Eastern Europe of particular focus in the coming years.

The chain currently operates 1,059 stores, of which 836 are located in Germany, and employs 9,000 people worldwide.