Kesa Electricals, who own Comet in the UK, has signed an agreement to acquire Electrodomesticos Menaje Del Hogar Sociedad Anonima (“EMH”), a Spanish specialist electrical retailer, from funds controlled by Impala Capital Partners and the Perez family. The consideration is €100 million in cash together with the assumption of net debt. The acquisition will be funded from existing facilities.
For the year to 31 March 2007, EMH reported revenue of €271m and earnings before interest, tax and depreciation (EBITDA) was €17m.
Chief Executive Jean-No«l Labroue commented “Spain is the fifth largest European market with further growth potential and is in the process of on-going consolidation. EMH allows Kesa to enter this important market and, with its strong store network, provides a solid platform from which we can develop our specialist business model.”
The transaction is subject to the usual regulatory approvals and is expected to complete in the third quarter of 2007.