3rd Apr 2014 06:53
LONDON (Alliance News) - Europe's largest home improvement retailer Kingfisher PLC Thursday said it is in exclusive negotiations to acquire French home improvement retail chain Mr Bricolage, for an overall enterprise vale of around EUR275 million.
Kingfisher, which owns and operates the brands B&Q, Screwfix and Castorama and Brico Dépôt in France, said it has started exclusive negotiations with the principal shareholders of Mr Bricolage to acquire their shareholdings.
"This would add a third, complementary strong business alongside Kingfisher's existing two successful brands in France," said Kingfisher Chief Executive Ian Cheshire in a statement.
Kingfisher said that under the terms of the proposed deal, it would acquire a 41.9% stake from from ANPF, which is held by franchisees, and 26.2% from the Tabur Family, at an agreed price per share of EUR15.
It also said that it would file a mandatory offer to acquire the shares held by the minority shareholders at the same price.
Kingfisher said that based on this share price, and including the French chain's net debt as at the end of 2013, the overall enterprise value of Mr Bricolage would be around EUR275 million.
"The addition to the group of an established and successful international franchising operation and exposure to new territories makes this an attractive growth opportunity," said Cheshire.
As part of the transaction, Kingfisher said that Mr Bricolage's existing franchisee and affiliate network would be maintained, and its members offered improved commercial terms.
The acquisition by Kingfisher of the stakes in Mr Bricolage held by ANPF and Tabur would be conditional upon anti-trust clearance, it said, adding that the whole process is likely to take until the end of the company's 2014/15 financial year.
Just last month, Kingfisher delivered an increase in profits and revenues for its recent financial year, while announcing the start of a multi-year capital return programme to shareholders this year and plans for a joint venture partner for B&Q China.
By Rowena Harris-Doughty; [email protected]; @rharrisdoughty
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