Kingfisher offloads Romanian business for £58m

(Sharecast News) - DIY group Kingfisher has announced the sale of its loss-making Brico Dépôt business in Romania to retailer Altex Romania for €70m (£58m) as it looks to focus on key growth markets. The Bucharest-headquartered subsidiary comprises 31 stores across 24 cities, along with distribution operations, which generated annual sales of £269m but made a loss of £18m in the most recent financial year.

Kingfisher, which entered into the Romanian market in 2013, said the divestment will give it "greater strategic focus on markets and growth initiatives where we are most strongly positioned to deliver attractive returns and create shareholder value".

Four-fifths of Kingfisher's group revenues come from UK and Ireland (where it trades as B&Q and Screwfix) and France (through Castorama and Brico Dépôt), while the company still operates out of Poland, Spain, Portugal and through a joint venture in Turkey.

Kingfisher's chief executive Thierry Garnier said he was pleased to have found an "experienced and successful local buyer" for the Romanian business.

"I would like to thank all Brico Dépôt Romania colleagues for their commitment and customer focus over the years. Following strong interest, the outcome of the sale process is testament to the progress the team has made in strengthening the foundations of the business."

As of January, the company employed 2,178 staff in the country.