Dixons builds up Greek presence
HIGH Street electrical retailer Dixons is to boost its European presence by acquiring a controlling stake in a Greek chain.
The group has agreed to buy 38.7% of electrical specialist P Kotsovolos for e53.7m (£36m), raising its total holding to 52.3%.
Kotsovolos, which trades under the Kotsovolos, Radio Athinai and One Way brands, employs 1,700 people, in 77 stand-alone stores and 50 concessions.
It made pre-tax profits of e3.4m (£2.3m) on sales of e367.2m.
Dixons, which is paying a 28% premium to last month's average share price, described the acquisition as a 'complementary business' with growth potential.
Following the acquisition - which is subject to approval by the competition authorities - Dixons will have to make a public tender for the remaining shares in Kotsovolos at e6.50 share.
Dixons started out as a single photographic shop in 1937 and now has more than 1,350 stores across the UK, Ireland, France, Spain, Italy, the Czech Republic, Hungary and the Nordic countries.
Analyst Rhys Williams at stockbroker Seymour Pierce said today's deal was positive as it added another European market to the Dixons group.
But he added: 'The UK remains the dominant operation, and trade, we believe, remains difficult.'
