Kingfisher to expand in France through Mr Bricolage acquisition

3rd Apr 2014 07:08

B&Q and Screwfix owner Kingfisher has revealed that it is in exclusive negotiations to buy French home improvement retailer Mr Bricolage, which would add a third business to its two existing brands in the country.Kingfisher, which already operates in France through its Castorama and Brico Dépôt chains, said that the deal values Mr Bricolage at an enterprise value of around €275m including its debt.Under the terms of the proposed purchase, Kingfisher would acquire a 41.9% stake from ANPF, which is held by franchisees, and 26.2% from the Tabur Family at an agreed price of €15 per share. A mandatory offer to buy the remaining shares held by minority shareholders at the same price would then be filed.Kingfisher's annual sales in France totalled £4.4m in the 12 months to February 1st, up 5.5% on the prior year, accounting to nearly 40% of group revenues.Chief Executive Sir Ian Cheshire said that the deal "would add a third, complementary strong business alongside Kingfisher's existing two successful brands in France"."The retention of Mr Bricolage's excellent management team within the Kingfisher cadre, the addition to the group of an established and successful international franchising operation and exposure to new territories makes this an attractive growth opportunity," he said.Kingfisher said that the deal will not likely complete until the end of the current financial year.BC