Kingfisher acquires 15 Romanian home improvement stores

Home improvement retailer Kingfisher has acquired 15 'Brincostore' retail outlets in Romania from a French retail company for an undisclosed sum, it announced Thursday.

Home improvement retailer Kingfisher has acquired 15 'Brincostore' retail outlets in Romania from a French retail company for an undisclosed sum, it announced Thursday.

The group said that the deal should be completed within the next two months, and is expected to be earnings neutral in the first year.

The addition of the home improvement stores takes its total number to around 1,050 in nine countries in both Europe and Asia, adding around two per cent selling space to the Kingfisher estate.

Ian Cheshire, Kingfisher's Group Chief Executive, said: "The Brico Dpt store model has proved very successful in France and Spain, and we have said before that it has the potential for further international expansion. Expanding Kingfisher's businesses in existing countries and in new territories is a key part of our 'Creating the Leader' strategy and I am therefore delighted to announce this exciting development.

"The home improvement market in Romania has solid growth potential and the stores we are acquiring are in good locations. We are looking forward to offering Brico Dpt's low-cost, easy to shop format to trade professionals and serious DIYers in Romania and developing a successful business there."

Brincostore Romania posted sales of €131m last year and earnings before interest, tax, depreciation and amortisation of €5.0m. Kingfisher said there is scope to grow the business to around 50 stores in the longer-term.

It added that there is a strong DIY culture among Romanian homeowners.

NR

Recommended

Broker safety – your questions answered
Investment strategy

Broker safety – your questions answered

Cris Sholto Heaton answers more of your questions about the safety of stockbroker accounts
25 Mar 2020
How demographics affects stock valuations
Investment strategy

How demographics affects stock valuations

New research suggests that stock and bond valuations are driven by the age of the population – at least in the US.
24 Feb 2020
Do you own shares in Sirius Minerals? Here’s what you need to do now
Stocks and shares

Do you own shares in Sirius Minerals? Here’s what you need to do now

Mining giant Anglo American has proposed a cash takeover of Yorkshire-based minnow Sirius Minerals. Unhappy shareholders must decide whether to accept…
20 Feb 2020

Most Popular

Why we won’t see a house-price crash in 2021
House prices

Why we won’t see a house-price crash in 2021

Lockdown sent house prices berserk as cooped up home-workers fled for bigger properties in the country. And while they won’t rise quite as much this y…
18 Jan 2021
Prepare for the end of the epic bubble in US stocks
US stockmarkets

Prepare for the end of the epic bubble in US stocks

US stocks are as expensive as they’ve ever been. How can you prepare your portfolio for a bubble bursting?
18 Jan 2021
The best investment trusts to buy for 2021
Investment trusts

The best investment trusts to buy for 2021

Sectors ranging from emerging markets to student accommodation look poised to do well this year, says David Stevenson, as he picks the best investment…
19 Jan 2021