Business
Acquisition of Babou Stores Group in France
Acquisition of Babou Stores Group in France.
About this update from B&m European Value Retail Plc
[{"type":"text","content":"\n \nRNS Number : 6695E B&M European Value Retail S.A. 19 October 2018 \n\n \n \n19 October 2018 \n B&M European Value Retail S.A.\n \nAcquisition of Babou Stores Group in France\nB&M European Value Retail S.A. (\"B&M\"), the UK's leading leading general merchandise value retailer, today announces the acquisition by its subsidiary, EV Retail Limited, of the entire issued share capital of Paminvest SAS a discount general merchandise retailer group operating with a chain of 95 stores under the trading name Babou in France (the \"Babou Stores Group\" or \"Babou\").\n \nFor the year ended 31 January 2018 the Babou Stores Group delivered Revenues of €347.1m, EBITDA of €24.7m, Profit before tax of €0.1m (after goodwill amortisation €10.7m) and had Gross Assets of €289.4m as at 31 January 2018. It operates in the discount retail sector, with c30,000 general merchandise, seasonal and textiles SKUs. Babou's stores are predominantly located at out of town sites with an average c.27,000 sq ft of retail space, compared to B&M's UK average of c.19,500 sq ft.\n \nThe total enterprise value of the transaction is €91.2m, which includes the debt of the Babou Stores Group refinanced by B&M. The consideration was paid in cash financed by an additional loan facility. There is no deferred consideration payable in relation to the transaction. The transaction was completed today.\n \nThe acquisition of the Babou Stores Group will provide a base which will enable B&M to develop and grow in France its proven and profitable value retail model. B&M's strategy for the Babou business is to apply B&M's direct product sourcing and limited assortment SKU model, while refining Babou's product offering. The average store size, location and customer base of Babou are comparable to the highly successful B&M Homestore operation in the UK. The French market, al...