UK’s Dixons Retail has agreed to divest its loss-making Electroworld business in central Europe to local rival NAY, ahead of its £3.7bn merger with telecommunication retailer Carphone Warehouse.
Electroworld, presently, operates 26 specialist electrical retail stores across Czech Republic and Slovakia.
Upon completion, Dixons Retail expects to receive a small deferred cash consideration spread over three years. The transaction is likely to close during the summer.
For the year to April 2014, the assets are being disposed from 26 stores, including two franchise stores.
Commenting on the sale Dixons Retail Group chief executive Sebastian James said: “I am very pleased that we have been able to secure a strong future for Electroworld who will be able to flourish as a part of the NAY Group in Central Europe. Following this transaction Dixons will be a market leader in every market in which it operates, delivering on one of our key strategic objectives.”
NAY co-founders Peter Zálešák and Ján Tomáš said: “It is a big step towards achieving our goal of reaching EUR 300m of sales in Central Europe and we strongly believe it allows the development of our market leading position in Slovakia. Furthermore it achieves our longer-term development to enter the Czech market and we are delighted to do that in conjunction with such a good partner as Electroworld.”
Dixons Retail is one of Europe’s leading specialist electrical multi-channel retailing and services company, operating over 900 stores. Its brands include Currys, PC World and Knowhow in the UK and Ireland.