Dixons increases stake in Pixmania
Electricals retailer Dixons has bought an additional 22% stake in Pixmania, taking its total holding to 99%.
Dixons will pay €10 million for the additional stake in the online electricals retailer which is indirectly held by Pixmania founders Steve and Jean-Emile Rosenblum. Completion of the acquisition is expected to take place later today.
Pixmania's e-merchant platform provides the basis of the Dixons UK and Ireland multi-channel operations as well as for a number of other third party clients. However a statement issued by Dixons today said that the rest of the Pixmania operations "face significant challenges".
Dixons said the acquisition will enable it to take full day to day control of Pixmania and is in line with the group's strategy to improve the performance of the business.
In the 52 weeks to 28 April 2012 Pixmania made an underlying loss of £19.8 million compared to a profit of £3.5 million in the previous year.
Commenting on the purchase, Sebastian James, chief executive of Dixons, said: "Pixmania is the heart of our very successful UK multi-channel business and this will ensure the stability and flexibility to continue to improve the experience for the customers of that business.
"Pixmania's own trading business continues to face strong market headwinds and this move will also allow us to manage the company in line with the group's wider strategy and take the decisive actions necessary to improve its performance."
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