Dixons Retail plc ("Dixons Retail"), Europe’s leading specialist multi-channel electrical retailing and services company, today announces that it has entered into an agreement to sell the ElectroWorld operations in Turkey to Bimeks, one of the leading electrical specialist retailers in Turkey.
Following completion, which is expected to take place by the end of this calendar year, and which remains subject to certain conditions, Dixons Retail expects to receive a cash consideration of approximately £2 million over two years.
For the year to April 2013, the assets being disposed of generated retail operating losses of £9 million and losses before tax of £13.8 million on turnover of £170.7 million and gross assets of £42.3 million from 32 stores (including 18 franchise stores).
Commenting on the disposal, Sebastian James, Dixons Retail Group Chief Executive, said:
"I am very pleased that we have achieved a further milestone in our strategic plan to focus on markets where we have leading positions. I have long believed that the Turkish electrical market has been ripe for consolidation and this agreement will enable ElectroWorld to flourish, as part of the Bimeks group in Turkey."
Commenting on the deal, Murat Akgiray, the Founder and Chairman of Bimeks, said:
"We are very pleased with this deal as the ElectroWorld business is a great fit with our stores and reinforces our market leading position in Turkey. Our multi-channel strategy is based on fast and sustainable growth with an evenly positioned geographical spread across Turkey. This transaction is a significant step in achieving our targets and driving the performance of Bimeks.”
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Information about Dixons Retail
Dixons Retail is one of Europe's leading specialist electrical retailing and services groups, employing 35,500 people in 14 countries. More than 100 million customers shop with us every year, online and in our c.1,100 stores.
Dixons Retail has built a successful and sustainable multichannel approach to electrical retailing. Focused on the customer, the business offers a comprehensive range of after sales services, including support from Knowhow, the UK's leading provider of technology solutions, support, expertise and repairs. Business-to-business services are provided through PC World in the UK. As market leader in the Nordics, the business enjoys a superb reputation for first class customer service, a cost effective supply chain, strong retail sites across four countries and great supply relationships.
Dixons Retails’ brands include Currys, PC World and Knowhow in the UK and Ireland. Customers shop with Elkjøp, El Giganten, Gigantti, Lefdal and Knowhow in the Nordic countries, UniEuro, PC City and No Problem in Italy, Kotsovolos in Greece, ElectroWorld in Central Europe, and Pixmania.com across Europe. Aiming to deliver an unbeatable combination of Value, Choice and Service, the company is proud to stand shoulder-to-shoulder with millions of customers whilst delivering a truly multichannel shopping experience.
Information about Bimeks
Bimeks is a Turkish electrical retailer offering information technology products, consumer electronics, white goods and small home appliances to its customers through 81 stores in Turkey. Bimeks is one of the country's leading and pioneering brands with a turnover TL 494 million in 2012 and total sales volume growing at an annual average rate of 30% over the last 8 years. Bimeks aims to reach a total of 154 stores in 81 cities by the end of 2015. The majority stake is held by the Akgiray Family. Bimeks is the first listed electronics retail company in İstanbul Stock Exchange.