EV Retail buys French discount store chain Paminvest for $105.14m

22 October 2018 (Last Updated October 22nd, 2018 11:11)

EV Retail, a subsidiary of British general merchandise value retailer B&M European Value Retail, has acquired the entire issued share capital in discount general merchandise retailer Paminvest SAS for €91.2m ($105.14m).

EV Retail buys French discount store chain Paminvest for $105.14m
New Look Retail Group is set to close its remaining 120 stores in China by the end of this December. Credit: Jaggery

EV Retail, a subsidiary of British general merchandise value retailer B&M European Value Retail, has acquired the entire issued share capital in discount general merchandise retailer Paminvest SAS for $105.14m.

Paminvest currently operates 95 stores under Babou Stores Group banner in the country.

The total value of the transaction was paid in cash, which was financed by an additional loan facility and includes the debt of the Babou Stores Group refinanced by B&M.

The deal will enable B&M to develop and grow its presence, as well as its value retail model in France.

The British retailer will apply B&M’s direct product sourcing and limited assortment SKU model to Babou’s store in a more to refine the latter’s product offering.

“We would like to welcome all Babou’s employees and stakeholders to the wider B&M family and look forward to a successful future together.”

B&M CEO Simon Arora said: “B&M has made no secret of its European growth plans since its IPO in 2014. We are delighted that discussions with Babou over a three year period have led to today’s transaction, which provides us with a platform for future growth in a large and attractive market whilst also providing a stable and logical new owner for Babou.

“We would like to welcome all Babou’s employees and stakeholders to the wider B&M family and look forward to a successful future together.”

In addition, Babou Stores Group CEO Thierry Morter will retire from his role effective immediately and will be succeeded by Cedric Mahieu.

Babou offers a range of products including 30,000 general merchandise, seasonal and textiles SKUs across its discount retail stores.