Kingfisher expands into Romania with the acquisition of 15 Bricostore outlets
Kingfisher, the owner of B&Q, is to expand into Romania following its acquisition of 15 Bricostore home improvement stores from French retailer Group Bresson for an undisclosed sum.
The deal, which is due to complete in the next two months, will add 2% selling space to the Kingfisher estate. The stores will be converted into Kingfisher’s Brico Dépôt format and are expected to be earnings neutral in the first year.
One of the largest home improvement retailers in Romania, Bricostore recorded sales of €131 million in the country last year and EBITDA of €5 million. Kingfisher said there was scope to grow the business to around 50 stores in the longer-term due to Romania’s growing home improvement market.
Ian Cheshire, Kingfisher’s group chief executive said: “The Brico Dépôt store model has proved very successful in France and Spain, and we have said before that it has the potential for further international expansion. Expanding Kingfisher’s businesses in existing countries and in new territories is a key part of our ‘Creating the Leader’ strategy and I am therefore delighted to announce this exciting development.
Never Miss a Retail Update!“The home improvement market in Romania has solid growth potential and the stores we are acquiring are in good locations. We are looking forward to offering Brico Dépôt’s low-cost, easy to shop format to trade professionals and serious DIYers in Romania and developing a successful business there.”
The deal will take Kingfisher’s total number of stores to around 1,050 in nine countries in Europe and Asia.
