Dixons to sell PIXmania and Turkish operations
Dixons Retail, the owner of Currys and PC World, is to sell its loss-making PIXmania business in France and its Turkish ElectroWorld operations as it look to focus on its strongest markets.
The PIXmania online electrical business will be purchased by German holding company Mutares while ElectroWorld is being sold to Bimeks, one of Turkey’s leading electrical retailers.
Under the terms of the PIXmania deal, Dixons will provide Mutares with €69 million cash which will be ring-fenced for the ongoing funding of the business.
Dixons group chief executive Sebastian James said: "I am a passionate believer that Dixons succeeds where we offer our customers a fully integrated multi-channel proposition and where we are the market leader. In order to succeed as a pure play e-tailer, PIXmania needs a different kind of entrepreneurial vigour.
“The Mutares Group has a solid track record of improving and turning businesses around as well as experience of doing business in France. If the transaction progresses, they will acquire PIXmania with a well funded balance sheet and an excellent management team."
Meanwhile Bimeks will pay around £2 million for ElectroWorld which has 32 stores in Turkey, including 18 franchise outlets.
James said: "I am very pleased that we have achieved a further milestone in our strategic plan to focus on markets where we have leading positions. I have long believed that the Turkish electrical market has been ripe for consolidation and this agreement will enable ElectroWorld to flourish, as part of the Bimeks group in Turkey."
Dixons announced the deals as it reported that group like-for-like sales rose 2% in its first quarter ending 31 July 2013 with like-for-like sales growth in the UK and Ireland of 6%.
Email this article to a friend
You need to be logged in to use this feature.
Please log in here