Kingfisher in talks to acquire Mr Bricolage
Kingfisher, the owner of B&Q and Screwfix, has entered into exclusive talks with a view to acquiring French home improvement retailer Mr Bricolage.
Under the terms of the proposed transaction, Kingfisher would acquire 41.9% of the share capital of Mr Bricolage from the Association Nationale des Promoteurs de Faites Le Vous-Mene and 26.2% from the Tabur Family at an agreed price per share of €15.
Subsequently, Kingfisher would make a mandatory offer to acquire the shares held by the minority shareholders at the same price.
At this level, and including the level of net debt as at 31 December 2013, the overall value of the transaction would be around €275 million.
As part of the transaction, Mr Bricolage's existing franchisee and affiliate network would be maintained and its members offered improved commercial terms.
Kingfisher said the whole process was likely to take until the end of its 2014/15 financial year to complete.
Sir Ian Cheshire, Kingfisher's group chief executive, said: "This 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."
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