20th Mar 2008 09:56
Marks & Spencer Group PLC20 March 2008 Issued: 20th March 2008 Marks and Spencer Group plc enters into joint venture with COMS to expand in Central and Eastern Europe Marks and Spencer Group plc (Marks & Spencer) and franchise partner COMS haveentered into a joint venture, with Marks & Spencer acquiring approximately 51%of COMS, a.s. for €13.6m in cash plus deferred consideration of up to €5.2m incash based on business performance and the achievement of agreed targets. COMS, a.s. operates 13 Marks & Spencer stores in the Czech Republic, Slovakia,Latvia and Lithuania. The joint venture plans to open around 30 stores in thesemarkets, together with Estonia, over the next few years. This announcement is in line with Marks & Spencer's plans to invest in itsexisting franchise partners where it will facilitate a faster pace of growth andgreater operating efficiency. Marks & Spencer plans to grow its internationalbusiness to 15-20 per cent of Group revenues within the next five years. COMS, a.s., one of Eastern Europe's leading private sector companies, has been afranchise partner of Marks & Spencer since 1996 and has exclusive rights tooperate Marks & Spencer stores in the countries under a franchise agreement.Marks & Spencer has purchased approximately 51 per cent of the share capital ofCOMS, a.s. from Dusan Mrozek and Zbynek Mrozek, through its wholly-ownedsubsidiary Marks and Spencer International Holdings Limited. Carl Leaver, Director of International Business, Marks & Spencer, said: "There is a great opportunity to open many more Marks & Spencer stores acrossCentral and Eastern Europe and grow a real presence in the region. The Marks &Spencer brand is already well-recognised in the Czech Republic and there isincreasing demand for good quality, great value products in markets likeSlovakia. We have worked with the COMS team since 1996 and their retailexpertise and local knowledge make them the ideal partner." Dusan Mrozek, Chairman of the Board of Directors, COMS, a.s. said: "We have worked with Marks & Spencer since 1996 and during that time we havealways felt we've been working with the right partner. We are therefore pleasedthat we have successfully completed broader discussions and will now set up ajoint venture. We look forward to expanding our business across the region tostrengthen our market position". -Ends- Notes to editors Marks & Spencer (M&S) is one of the UK's leading retailers, offering highquality, great value clothing, as well as home products and outstanding qualityfood. M&S employs over 75,000 people and has over 600 stores in the UK and over275 stores in 39 territories around the world. Marks & Spencer's total Grouprevenues for 2006/7 were £8.5bn. In November 2007 at its interim results, Marks& Spencer identified significant opportunities to grow its internationalbusiness under the leadership of Carl Leaver, its Director of InternationalBusiness, targeting a 15-20% contribution to its Group revenues within the nextfive years. At its third quarter sales update on 9 January, Marks & Spencerannounced sales in its international business were up 15.1% (13 weeks to 29December 2007). www.marksandspencer.com/thecompany. COMS, a.s. runs 10 Marks & Spencer stores in the Czech Republic in Prague, Brno,Karlovy Vary and Ceske Budejovice. In 2007 the company initiated internationalexpansion with Marks & Spencer store openings in Lithuania and Slovakia. Theinternational stores are being run by COMS, a.s. via fully owned companiesregistered in respective countries. COMS, a.s. offers Czech customers qualityMarks & Spencer fashion, cosmetics, food and consumer goods on 11 000 squaremeters of floor space. Contact detailsM&S Corporate Press Office: +44 (0)20 8718 1919Out of hours +44 (0)20 8718 2000 M&S Investor Relations:Amanda Mellor +44 (0)20 8718 3604Majda Rainer +44 (0)20 8718 1563 M&S Press Office in Czech Republic:Irena Zatloukalova 00 420 724 442 920, [email protected] Kri 00 420 602 266 316, [email protected] COMS press office:Renata Fiserov 00 420 603 533 233 [email protected] This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
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