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(Alliance News) - B&M European Value Retail SA on Wednesday said it will sell its entire holding in German business JA Woll-Handels GmbH for EUR12.5 million cash, plus the repayment of debt.
B&M holds an 80% stake in Jawoll.
The sale is to a consortium led by AC Curtis Salta GmbH, a company funded by Hamburg-based investment firm Adiuva Capital. The consortium also includes Wiebke Stern, Sebastian Dorin, Alexander Dorin, STIWEC GmbH and Jalogy Beteiligungs GmbH.
B&M will receive EUR2.5 million upon completion of the transaction with the remaining EUR10 million due to be paid at the end of the year, conditional on the trading results of Jawoll. In addition, on completion of the deal the buyer will repay Jawoll's bank debt, which has a facility limit of up to EUR16 million, and had been guaranteed by B&M.
The transaction is expected to complete within the next 28 days or latest by June 1.
Jawoll and subsidiary Jawoll Vertriebs GmbH have 89 general merchandise discount stores in north west Germany. It reported a loss of GBP15.4 million in the financial year that ended in March 2019. As at September 28, the business had gross assets valued at GBP192.6 million.
B&M shares were trading 3.2% higher at 315.80 pence each on Wednesday morning in London.
By Ife Taiwo; ifetaiwo@alliancenews.com
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