British group Kingfisher, Europe’s leading home improvement retailer, revealed it paid GBP 19 million (EUR 21.7 million) last year for the acquisition of Romanian home improvement company Praktiker, according to final results statement for year ended 31 January 2018.
“On 1 August 2017, the Group signed an agreement to purchase 100% of the shares in Praktiker Romania S.A., a Romanian home improvement company. Following regulatory approval, the transaction completed on 30 November 2017 for net consideration (including net debt) of £19 million,” Kingfisher said in its final results statement for year ended 31 January 2018.
Kingfisher revealed it obtained the control of Praktiker Romania by acquiring 100% of its share capital for a consideration of GBP 14 million (EUR 16 million), “all of which comprised cash”, the rest of the amount being net debt.
Praktiker had a network of 26 stores at January 31, but Kingfisher said three Praktiker stores will be closed.
In August 2017, Kingisher, which already owned Brico Depot Romania, announced it has taken over Praktiker retailer from Turkish businessman Omer Susli for an undisclosed sum.
The british group also announced its Romanian unit turned profitable last year. “Romania delivered a £3 million retail profit (2016/17: break even reported result)”, the company said.
After the acquisition of Praktiker, Kingfisher has 38 stores with a total sales area of 273,000 square meters and around 2,500 employees in Romania, company data show.
“Goodwill of £36 million has been recognised on provisional net liabilities acquired of £22 million, representing a strategic premium to strengthen the Group’s position in Romania and anticipated synergies that will arise from the acquisition. None of this goodwill is expected to be deductible for income tax purposes,” according to Kingfisher.
Praktiker recorded a turnover of around EUR 140 million in 2016, with a network of 27 stores in 23 cities. Omer Susli took over the retail chain in 2014.