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Kingfisher expands into Romania with Brico Dépôt format

Kingfisher plc, Europe’s leading home improvement retailer, today announces that it has acquired ‘Bricostore’s’ 15 home improvement stores in Romania from Group Bresson, a French retail company, for an undisclosed sum. The deal is planned to complete in the next two months and is expected to be earnings neutral in the first year.

The deal adds 2% selling space to the Kingfisher estate, taking its total store numbers to around 1,050 in nine countries in Europe and Asia. The Romanian stores will be converted into the Brico Dépôt format.

Bricostore Romania recorded sales of €131 million last year and EBITDA of €5 million. It is one of the largest home improvement retailers in Romania, with well-located stores. Four of the branches are in Bucharest, with most located near other major international retailers. Using the Brico Dépôt format, there is scope to grow the business to around 50 stores in the longer-term.

Romania is an attractive, growing market for home improvement, with the organized part of the DIY market having trebled in size since 2005 to around €1 billion in 2011. There is a strong DIY culture among homeowners.

Commenting on the announcement Ian Cheshire, Kingfisher’s Group Chief Executive, said: "The Brico Dépôt 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 Dépôt’s low-cost, easy to shop format to trade professionals and serious DIYers in Romania and developing a successful business there."

Notes:

Bricostore Romania:

- Strong market position
- 60% of the stores are owned on a freehold basis; 40% leasehold
- Good locations: four of the stores are in Bucharest with most located near other major international retailers (eg Auchan, Carrefour and Ikea)
- Romania has a population of 21 million, with 8 million households.  

Kingfisher plc is Europe’s leading home improvement retail group and the third largest in the world, with around 1,050 stores in nine countries in Europe and Asia. Its main retail brands are B&Q, Castorama, Brico Dépôt and Screwfix. Kingfisher also operates the Koçtaş brand, a 50% joint venture in Turkey with the Koç Group, and has a 21% interest in Hornbach, Germany’s leading large format DIY retailer.

Hornbach operates five stores in Romania. Kingfisher’s relationship with Hornbach does not change as a result of the Bricostore Romania deal.

Brico Dépôt currently has 105 stores in France and 21 in Spain. Brico Dépôt is primarily aimed at serious DIY-ers and professional builders. It is a low-price format which offers customers the essentials for their DIY and renovation projects, with products available in large, building site quantities.

Source : Kingfisher
www.kingfisher.co.uk/index.asp?pageid=55&newsid=995

18 April 2013
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