Home improvement retailer Kingfisher sells Romania business

LONDON (Reuters) -European home improvement retailer Kingfisher will exit the Romanian market after agreeing the sale of its loss-making Brico Depot Romania business to Altex Romania for an enterprise value of 70 million euros ($74 million).

It said the sale, including a network of 31 stores in 24 cities, distribution operations, and head office in Bucharest, was expected to complete in the first half of Kingfisher’s 2025/26 year, subject to regulatory approval.

“This decision enables us to have greater strategic focus on markets and growth initiatives where we are most strongly positioned to deliver attractive returns and create shareholder value,” Kingfisher CEO Thierry Garnier said.

The group owns B&Q and Screwfix in the United Kingdom, and Castorama and Brico Depot in France.

Brico Depot Romania made sales of 269 million pounds ($342 million) in 2023/24, representing 2.1% of group sales, but made a retail loss of 18 million pounds.

“We see this as a sensible disposal that allows Kingfisher to focus on its core regional businesses in the UK, France, and Poland,” said analysts at Jefferies.

Kingfisher entered the Romanian market in 2013, acquiring Bricostore Romania from French retail business Group Bresson. It expanded its store network in the country through the acquisition of Praktiker Romania in 2017.

Altex Romania said it was committed to developing the Brico Depot Romania business.

Last month, Kingfisher warned of a 45 million pound hit to 2025/26 profit from tax-raising measures in government budgets in both Britain and France.

Its shares are up 4% so far this year.

($1 = 0.7876 pounds)

(Reporting by James Davey.Editing by Tomasz Janowski and Mark Potter)