Acquisition

18 Apr 2005 07:01

GUS PLC18 April 2005 18 April 2005 GUS plc Argos buys 33 Index stores GUS plc, the retail and business services group, today announces that Argos hasagreed to buy 33 Index stores and the Index brand from Littlewoods Limited("Littlewoods"). The purchase price is £44m payable in cash upon completion,which is expected to be during July 2005. Argos has agreed to purchase 33 of Index's 66 standalone stores fromLittlewoods. It expects, subject to lease assignment in each case, to convertall of these 33 stores to the Argos fascia over a three-month period followingcompletion. In the year to 30 April 2004, sales at these stores wereapproximately £75m. No merchandise stock will be acquired as part of thetransaction. Argos will acquire the Index brand, certain intellectual property rights andother assets within three months of the completion date. Argos will not incur costs in respect of any closure of the remaining 33standalone Index stores or the 93 concessions that Littlewoods will retain. Commenting on the purchase, Terry Duddy, Chief Executive of Argos Retail Group,said: "The purchase of these stores enables us to extend Argos' proven model ofoffering better choice, value and convenience to more customers in a costeffective and efficient way. We are pleased to welcome around 800 Index storeemployees to Argos." Enquiries GUSRichard Ashton Finance Director, Argos Retail Group 020 7495 0070Fay Dodds Director of Investor Relations, GUS FinsburyRupert Younger 020 7251 3801 GUS announcements are available on its website, www.gusplc.com. This information is provided by RNS The company news service from the London Stock Exchange