18 December 2024

Kingfisher announces sale of Brico Dépôt Romania to Altex Romania

Kingfisher plc, the international home improvement company, today announces, following a competitive process, the sale of its Brico Dépôt Romania business to Altex Romania for an enterprise value of €70m ¹ (equivalent to £58m²).

The sale comprises the entire Brico Dépôt Romania business, including its network of 31 stores in 24 cities, distribution operations, and head office in Bucharest.

The sale is expected to complete during the first half of FY 2025/26, subject to regulatory approval.

Thierry Garnier, Kingfisher CEO, said:

"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.

"I would like to thank all Brico Dépôt Romania colleagues for their commitment and customer focus over the years. Following strong interest, the outcome of the sale process is testament to the progress the team has made in strengthening the foundations of the business."

Dan Ostahie, Altex Romania CEO said:

"Altex Romania, the leader in the electro-IT market, is excited to announce the acquisition of the Brico Dépôt store network. 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 center of our focus. Our growth strategy is built on an omnichannel model, ensuring a seamless and enjoyable shopping experience for customers, regardless of the sales channel they choose.

"I want to convey a message of confidence to all Brico Dépôt customers, employees, and partners. We are committed to developing this business by bringing innovation and efficiency to every aspect of the operation. Every member of our team will benefit from opportunities for professional development and a stimulating work environment that emphasizes collaboration and excellence. Altex Romania is confident in the future of Brico Dépôt and is determined to continue serving the community with high-quality products and services."

In FY 2023/24, Brico Dépôt Romania delivered sales of £269m, representing 2.1% of Group sales, and contributed a retail loss of £(18)m and a free cash outflow of £(17)m. 

Kingfisher first 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 transaction has no impact on Kingfisher's Brico Dépôt banners in France, Spain and Portugal.

Enquiries:

Notes to Editors

1.   Subject to customary adjustments relating to net debt and working capital at completion.

2.   Figures presented in GBP use the following exchange rate: EUR 1.21: GBP1.00

About Kingfisher

Kingfisher plc is an international home improvement company with over 1,900 stores, supported by a team of over 78,000 colleagues. We operate in eight countries across Europe under retail banners including Screwfix, B&Q, Castorama, Brico Dépôt, TradePoint and Koçtaş. We offer home improvement products and services to consumers and trade professionals who shop in our stores and via our e-commerce channels www.kingfisher.com

Better Homes. Better Lives. For Everyone. At Kingfisher, we believe a better world starts with better homes and we strive to help make that happen.

About Altex Romania

Altex is a leading retail company in Romania, with over 130 stores nationwide. Over more than three decades since its establishment, Altex has grown from a local television import business into the market leader for electronics, home appliances, IT&C, and multimedia products in Romania. From the very beginning, Altex has been committed to offering high-quality products tailored to consumer needs and providing accessible financing solutions. The "2X the Difference" service, compared to other online or offline stores, guarantees customers the lowest price in Romania.

Over time, Altex has expanded not only its product range but also its services. To support customers in accessing financing, Altex established Credex, a consumer credit company that provides optimal financing solutions with low-interest rates for purchases made both online and across its national store network.