British home improvement company Kingfisher has disclosed the divestiture of its Brico Dépôt Romania business to domestic retailer Altex Romania.
The transaction, which followed a bidding process, is valued at €70m ($72.7m).
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The deal encompasses the complete Brico Dépôt portfolio in Romania, which includes a network of 31 retail outlets across 24 cities, logistics infrastructure and the central administrative office in Bucharest.
Altex Romania CEO Dan Ostahie stated: “Altex Romania, the leader in the electro-IT market, is excited to announce the acquisition of the Brico Dépôt store network.
“This marks a significant milestone for all parties involved, and this first step opens up new horizons for growth and opportunities in the DIY market in Romania.
“Our primary goal is to continue growing while delivering quality services with the customer at the centre of our focus. Our growth strategy is built on an omnichannel model, ensuring a seamless and enjoyable shopping experience for customers, regardless of the sales channel they choose.”
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By GlobalDataThe completion of the sale is anticipated within the first half of the financial year 2025/26, pending approvals from regulatory bodies.
Kingfisher noted that in the financial year 2023/24, Brico Dépôt Romania reported sales of £269m, accounting for 2.1% of Kingfisher’s group sales.
The Romanian operation also recorded a retail loss of £18m and a free cash outflow deficit of £17m.
Kingfisher first entered the Romanian market in 2013 with the acquisition of Bricostore Romania from Group Bresson, a French retail conglomerate. Subsequent expansion was achieved through the procurement of Praktiker Romania in 2017.
Kingfisher’s decision to sell its Romanian business will not influence its Brico Dépôt brand presence in France, Spain and Portugal.
Kingfisher CEO Thierry Garnier stated: “We are pleased to have found an experienced and successful local buyer for Brico Dépôt Romania.
“This decision enables us to have a greater strategic focus on markets and growth initiatives where we are most strongly positioned to deliver attractive returns and create shareholder value.
“I would like to thank all Brico Dépôt Romania colleagues for their commitment and customer focus over the years. Following strong interest, the outcome of the sale process is testament to the progress the team has made in strengthening the foundations of the business.”
In June 2024, Kingfisher announced the development of an internal AI orchestration platform called Athena.
