July 27, 2017

Ceconomy acquires stake in Fnac Darty

Ceconomy, the new holding company spun off the German Metro Group to accommodate the company’ technical retail enterprises including Media Markt and Saturn, has signed an agreement to acquire a minority stake in Fnac Darty from Artemis S.A. (Artémis), a French holding company owned by François Henri Pinault. With sales of Euro 7.4 billion and earnings before interest, taxes, depreciation and amortization (EBITDA) of Euro 305 million in fiscal 2016, Fnac Darty is the leading retailer for consumer electronics, household appliances and entertainment products in France. Media Saturn recorded sales of Euro 22 billion in the last fiscal year.

According to a press release, the overall consideration to be paid by Ceconomy to Artémis at consummation of the transaction amounts to approximately Euro 452 million in cash. The stake is equivalent to Artémis’ entire position in Fnac Darty, which represents approximately 24.33 percent of outstanding shares as of 30 June 2017. The consummation of the transaction is, in particular, subject to regulatory conditions. Cecenomy said it currently expects consummation to occur by the end of August 2017. Upon closing of the transaction, the German Holding will become the largest shareholder of Fnac Darty.

Pieter Haas, Chief Executive Officer of Ceconomy, commented: “The financial investment in Fnac Darty is a great opportunity for Ceconomy for two reasons: first, we gain exposure to the highly attractive French market and its particularly strong consumer electronics segment; and, second, it delivers on our ambition to further strengthen our position as the leading European platform for Consumer Electronics-related businesses, brands and concepts. This move marks a dream start of Ceconomy as an independent company after the demerger of the Metro Group. The management team of Fnac Darty, led by Enrique Martinez and Matthieu Malige, have successfully integrated Fnac and Darty to a strong player that is greatly appreciated by consumers in Europe. Our investment in the Group will enable us to be part of Fnac Darty’s success story going forward.”

With the acquisition of the minority stake in Fnac Darty, Ceconomy will gain exposure to the French consumer electronics market which stands for  a volume of Euro 30 billion. With a market share of 23 precent, Fnac Darty is the largest and leading consumer electronics retailer in France with a presence in nine additional countries. France is one of the few major European markets in which Ceconomy has no presence. In 2010, Media Saturn withdrew from the French market after significant losses.

Fnac Darty as a Group has emerged following the acquisition and integration of Darty by Fnac in 2016. The company is one of the most important European retailers of household appliances, consumer electronics and entertainment products. The Group operates a successful multi-channel business model which combines a nationwide physical retail presence with online and mobile sales channels. In France, Fnac Darty currently has 455 stores with seven different formats, including high-street and suburban stores as well as smaller downtown stores and shop-in-shops. With further outlets in Spain, Portugal, Switzerland, Belgium, Luxembourg and The Netherlands, the company operates a total of more than 660 stores.

Fnac Darty generates approximately 16 percent of its sales online, driven by a strong community of on average 13.6 million unique visitors per month in France across its different online and mobile sites. The multi-channel business model enables Fnac Darty to leverage synergies between its extensive store network and its strong online presence. Features include in-store pickups of online sales and various options for home deliveries, among others. Fnac Darty also operates a successful online marketplace which acts as an intermediary and is used by over 3,800 professional sellers as well as several hundreds of thousands of private sellers.

In addition, Fnac Darty offers customers an extensive portfolio of services. Approximately 6.7 million customers across various countries are members of its loyalty program. 

Ceconomy said it has fully secured the financing of the transaction. After its separation from the Metro Group, Ceconomy has been listed on the stock market since July 13, 2017.

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