14th Feb 2006 07:01
MFI Furniture Group PLC14 February 2006 14 February 2006 MFI FURNITURE GROUP PLC ("MFI") SALE OF HYGENA CUISINES SA The Board of MFI announces that it has completed the sale of its French retailbusiness, Hygena Cuisines SA, to Nobia AB for total gross cash proceeds (beforeexpenses) of €135 million (approximately £92m). The decision to sell Hygena Cuisines is part of the strategic review of theGroup's business being conducted by Matthew Ingle following his appointment asChief Executive in October 2005. As part of this review, the Board has decidedto focus resources on its core UK operations, in particular the continued growthof Howden Joinery and the recovery of Retail. The sale to Nobia follows acompetitive auction process, managed for MFI by Cazenove, in which keen interestwas expressed in Hygena Cuisines by a number of parties. The cash proceeds willbe applied to reducing the Group's bank debt. The transaction has received the support of the Hygena Cuisines Works Counciland the business will continue to be managed by Hygena's current managementteam. As part of the agreement reached with Nobia, MFI will continue to supply HygenaCuisines with kitchen furniture products for a term of 3 years after completion.MFI has also agreed to provide certain information technology services to HygenaCuisines for a limited period of time until the transition in ownership andsystems has been assured. In addition to the business of Hygena Cuisines, Nobia is acquiring the ownershipof the Hygena trademark in continental Europe. MFI's ability in due course toexpand the Howden Joinery business outside the UK is unaffected. Howdenscurrently operates 12 depots in France through Houdan Menuiseries SA. In the year ended 31st December 2005, Hygena Cuisines reported audited turnoverof €195.2 million and profit before tax of €8.0 million. The gross assets beingsold amounted to €83 million as at 31st December 2005. Commenting on the sale, Matthew Ingle, MFI Chief Executive, said: "This is an excellent deal for MFI and for the employees and customers of HygenaCuisines. We are very proud of what the business has achieved under ourownership and I am confident that it will continue to flourish as part of Nobia.The sale and cash receipt strengthen our ability to focus our efforts on therecovery and growth of the Group here in the UK." Fredrik Cappelen, President and CEO of Nobia, said: "This is an important strategic move for Nobia. By acquiring Hygena's extensiveoperations, we will strengthen our foothold in Continental Europe, whileestablishing a solid platform for growth in the French market. To control thesales points is an important part of our strategy and this deal brings the grandtotal of directly operated stores to 695. In addition the acquisition of Hygenaincreases the synergy potential within Nobia." Enquiries Investors: Mark Robson MFI Furniture Group 020 7404 5959 (today only)Gary Rawlinson 07898 397 527 Media: Susan Gilchrist Brunswick 020 7404 5959Fiona LaffanAnna Jones Notes to Editors: Euro consideration converted at Euro1.46/£ Hygena Cuisines SA is one of France's leading specialist retailers of kitchenand bathroom interiors with 138 directly operated stores throughout France.Headquartered in Lille, Hygena has over 900 employees. Nobia is one of Europe's leading kitchen interiors company with sales ofapproximately SEK 12 billion and around 6,700 employees. The Group owns a numberof well-known brands with strong positions in the Nordic countries, the UnitedKingdom, Austria, and Germany. This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
Howden Joinery