Duesseldorf, 26 July 2017 – CECONOMY (CEC) (currently: METRO AG) has signed an agreement to acquire a minority stake in the leading French retailer for consumer electronics, household appliances and entertainment products Fnac Darty from ARTEMIS S.A. (Artémis), a French holding company owned by François Henri Pinault. The overall consideration to be paid by CECONOMY to Artémis at consummation of the transaction would amount to approximately €452 million in cash (for further details on the consideration please refer to the ad-hocannouncement published by METRO AG earlier today regarding this transaction). The stake is equivalent to Artémis’ entire position in Fnac Darty, which represents approximately 24.33% of outstanding shares as of 30 June 2017. The consummation of the transaction is, in particular, subject to regulatory conditions. CECONOMY currently expects consummation to occur by the end of August 2017. Upon closing of the transaction, CECONOMY will become the largest
shareholder of Fnac Darty.
With the acquisition of the minority stake in Fnac Darty, CECONOMY will gain exposure to the French market as well as the attractive consumer electronics segment which stands for €30 billion. With a market share of 23% Fnac Darty is the largest and leading consumer electronics retailer in France with a presence in nine additional countries. So far France is one of the few major European markets in which CECONOMY has no presence.
Fnac Darty as a Group has emerged following the acquisition and integration of Darty by Fnac in 2016. In the same fiscal year, Fnac Darty generated pro forma sales of €7.4 billion and pro forma earnings before interest, taxes, depreciation and amortization (EBITDA) of €305 million. This translates into an EBITDA margin of 4.1%. According to the current Bloomberg consensus, it is estimated that Fnac Darty will further uplift its profitability to an EBITDA of approximately €355 million for the current fiscal year.
Fnac Darty is a European leader of household appliances, consumer electronics and entertainment products. The Group operates a highly successful multi-channel business model which combines a nationwide physical retail presence with online and mobile sales channels. Fnac Darty currently has more than 660 stores with seven different formats, including highstreet and suburban stores as well as smaller downtown stores and shop-in-shops.
Fnac Darty generates approximately 16% of its sales online, driven by a strong community of on average 13.6 million unique visitors per month in France across its different online and mobile sites. The multi-channel business model enables Fnac Darty to leverage synergies between its extensive store network and its strong online presence. Features include in-store pickups of online sales and various options for home deliveries, among others. Fnac Darty also operates a successful online marketplace which acts as an intermediary and is used by over 3,800 professional sellers as well as several hundreds of thousands of private sellers.
In addition, Fnac Darty offers customers an extensive portfolio of services. Approximately 6.7 million customers across various countries are members of its loyalty program.
CECONOMY has fully secured the financing of the transaction. The Company expects to retain its investment grade rating after closing of the transaction which is expected by the end of August 2017.
The complete press release you will find here.