Kingfisher buys 15 Bricostore units in Romania, will re-brand to Brico Dépôt, could expand network

Home improvement and DIY group Kingfisher has bought 15 stores in Romania from French group Bresson, according to a company announcement. Kingfisher plans to operate the Romanian stores under the Brico Dépôt brand and sees potential to expand the network to 50 stores over the longer term.

Kingfisher has acquired the 15 DIY superstores, currently under the Bricostore brand, for “an undisclosed sum.” The deal is scheduled to be completed over the next two months and Kingfisher expects the venture to be earnings neutral in the first year. According to Bloomberg, quoting people close to the deal, the transaction was worth EUR 75 million. “The home improvement market in Romania has solid growth potential and the stores we are acquiring are in good locations,” said Kingfisher Group chief executive Ian Cheshire. Four of the stores are in Bucharest and most are located within retail parks alongside retailers such as Auchan and Cora. The group believes there is a “strong DIY culture” among Romanians and states that the local market has trebled in size since 2005 to value some EUR 1 billion in 2011. Bricostore Romania recorded sales of EUR 131 million in 2012 and EBITDA of EUR 5 million, according to Kingfisher group. Along with the suggestions of future expansion, Kingfisher refers to the apparent success of the Brico Dépôt brand in France and Spain, where the stores are a common sight in retail parks. Kingfisher deems itself as Europe’s leading home improvement retail group and the third largest in the world. Including the new Romanian acquisitions, the group has around 1,050 stores in nine countries in Europe and Asia. Its main brands are B&Q, Castorama, Brico Dépôt and Screwfix. Kingfisher also operates the Koçtaş brand, a 50 percent joint venture in Turkey with the Koç Group, and has a 21 percent interest in German large format DIY retailer Hornbach. Hornbach already operates five stores in Romania, but according to Kingfisher, there will be no change to the relationship with Hornbach as a result of the new Romanian deal. Brico Dépôt currently has 105 stores in France and 21 in Spain. Brico Dépôt markets home decoration, maintenance and building supplies, for individual consumers and in bulk. editor@romania-insider.com