April 18 (Bloomberg) -- Kingfisher Plc, Europe’s largest home-improvement retailer, agreed to pay 75 million euros ($98 million) for Romania’s third-largest do-it-yourself chain Bricostore in a bid to extend its trade business, according to a person familiar with the transaction.
The price for the 15-store chain, owned by French retail firm Group Bresson, is worth less than the net asset value of the business, said the person, who declined to be identified because the deal is not yet final. That’s mainly due to the 60 percent freehold ownership of the stores. The retailer said today the deal will be completed in the next two months and is expected to be earnings “neutral” in the first year.
Kingfisher, which also owns the B&Q and Castorama chains in Europe, said it will convert the retailer to its Brico Depot trade format to take advantage of the “strong DIY culture among homeowners” and trade professionals. The retailer is looking to extend its Brico Depot and Screwfix trade formats in new markets to drive growth after reporting the first annual profit decline in four years last month.
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