Kingfisher to pay EUR 75 mil. for Bricostore chain in Romania
The British DIY grup Kingfisher will pay EUR 75 million for the 15 stores of Bricostore in Romania, less than the net value of the assets, has declared a source connected to the deal to Bloomberg, cited by Mediafax.
The level of price was determined especially by the fact that the total ownership rights are exerted on 60% of the stores involved in the transaction, the source declared.
Kingfisher announced the took over from the French retailer Group Bresson of the 15 Bricostore units in Romania, with EUR 131 million sales last year and considers the possibility of growing the business on long term to approx. 50 units. The retailer said that the transactio will be completed in the next two months and would not affect the profit of the first year.
The stores in Romania will be reconfigured as Brico Dépôt, format used by the British group in France and Spain.
After the taking over of the 15 stores, Kingfisher reaches approx. 1,050 units in nine countries from Europe and Asia. Kingfisher registered EUR 12.3 billion sales for the fiscal year that ended in January, with 2.4% decrease from the similar previous period.
Bricostore is part of the Group Bresson, a company with retail activities. Bressons currently owns in France the Monoprix supermarkets and the But stores, dedicated to the furniture retail.
The Romanian DIY market counts companies such as Ambient, bauMax, Bricostore, Dedeman, Hornbach, Mr. Bricolage, OBI and Praktiker. (source: wall-street.ro)