Europe’s home improvement retail group Kingfisher has entered into negotiations to purchase stake in Mr Bricolage, a French retail chain that offers home improvement and do-it-yourself goods.
Under the deal, Kingfisher would purchase 41.9% stake in Mr Bricolage from ANPF and 26.2% stake from the Tabur Family at a price of €15 per share.
The transaction is awaiting anti-trust clearance, and is expected to close by the end of Kingfishers’ 2014/15 financial year.
The retailer further plans to file a deal to purchase remaining shares held by other minority shareholders for the same price.
At the end of 31 December 2013, the value of entire business is around €275m.
As part of the deal, Mr Bricolage’s existing franchisee and affiliate network would be retained and its members will be offered improved commercial terms.
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Commenting on the proposed transaction, Kingfisher Group CEO Sir Ian Cheshire said the purchase would add a third, complementary strong business alongside Kingfisher’s existing two successful brands in France.
“The retention of Mr Bricolage’s excellent management team within the Kingfisher cadre, the addition to the Group of an established and successful international franchising operation and exposure to new territories makes this an attractive growth opportunity,” Cheshire added.
Mr Bricolage currently operates 81 directly owned stores and 435 franchised stores in France.
Additionally, it has 69 franchised stores in 10 other countries and a network of independent affiliated stores in France.