Kingfisher Share News (KGF)

Home improvement retailer Kingfisher has acquired 15 'Brincostore' retail outlets in Romania from a French retail company for an undisclosed sum, it announced Thursday. The group said that the deal should be completed within the next two months, and is expected to be earnings neutral in the first year. The addition of the home improvement stores takes its total number to around 1,050 in nine countries in both Europe and Asia, adding around two per cent selling space to the Kingfisher estate. 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. "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."Brincostore Romania posted sales of €131m last year and earnings before interest, tax, depreciation and amortisation of €5.0m. Kingfisher said there is scope to grow the business to around 50 stores in the longer-term. It added that there is a strong DIY culture among Romanian homeowners. NR