B&Q owner Kingfisher sells underperforming Romanian arm
Kingfisher has agreed to sell its Brico Dépôt Romania business for £58m to Altex Romania.
The sale, which is expected to be completed in the first half of the next financial year, comprises the entire Brico Dépôt Romania business, including its network of 31 stores in 24 cities, distribution operations, and head office in Bucharest.
It will be sold to electro-IT retailer Altex Romania.
Brico Dépôt entered the Romanian market in 2013 when it acquired 15 Bricostore stores.
In the last financial year, Brico Dépôt Romania delivered sales of £269m, representing 2.1 per cent of Kingfisher sales, and contributed a retail loss of £18m and a free cash outflow of £17m.
Kingfisher, which owns the B&Q brand in the year, decided to shed to underperforming business following a tough year for the group. A few weeks ago it reduced the top end of its previously-guided profit forecast of between £510m and £550m to between £510m and £540n in November.
Its share price has fallen by around eleven per cent in the past month, although it has risen by nearly seven per cent in the year to date.
Kingfisher CEO Thierry Garnier said the sale allowed the firm to have “greater strategic focus on markets and growth initiatives where we are most strongly positioned to deliver attractive returns and create shareholder value”.
Kingfisher said the transaction had “no impact” on Kingfisher’s Brico Dépôt banners in France, Spain, and Portugal.
Dan Ostahie, Altex Romania CEO, said: “Altex Romania is confident in the future of Brico Dépôt and is determined to continue serving the community with high-quality products and services.”
“We are committed to developing this business by bringing innovation and efficiency to every aspect of the operation.”