Kingfisher has sold Brico Dépôt Romania to a Romanian retail company Altex Romania.
The sale comprised the entire Brico Dépôt Romania business, including its network of 31 stores in 24 cities, distribution operations and head office in the capital city of Romania, Bucharest. The transaction cost €70 million, equivalent to about £58 million. The sale is expected to complete in the first half of FY 2025/26.
"We are pleased to have found an experienced and successful local buyer for Brico Dépôt Romania. This decision enables us to have greater strategic focus on markets and growth initiatives where we are most strongly positioned to deliver attractive returns and create shareholder value,” said Thierry Garnier, CEO of Kingfisher.
Brico Dépôt Romania reported sales of £269 million in the fiscal year 2023/24, accounting for 2.1% of the Group's total sales. The company posted a retail loss of £18 million and a free cash outflow of £17 million during the same period.
Kingfisher entered the Romanian market in 2013, when it acquired Bricostore Romania from French retail business Group Bresson. It expanded its store network in the country through the acquisition of Praktiker Romania in 2017.
“This marks a significant milestone for all parties involved, and this first step opens up new horizons for growth and opportunities in the DIY market in Romania. Our primary goal is to continue growing while delivering quality services with the customer at the centre of our focus,” said Dan Ostahie, CEO of Altex Romania.
Kingfisher also released its results for Q3 2024 to 31 October earlier, with total group sales dropping by 0.6%.
