Kingfisher offloads Russian chain in £73m deal

B&Q and Screwfix owner Kingfisher has announced it has offloaded Castorama Russia to Russian home improvement firm Maxidom in a £73m deal.

Kingfisher, which has approximately 1,350 stores across eight European countries, said that the deal was closed on 30 September with 80% paid at the closing of the transaction.

It added that the remaining 20% is to be paid in equal instalments over two years.

Thierry Garnier, CEO of Kingfisher, said: “I am pleased to announce the completion of the sale of Castorama Russia to Maxidom. I would like to thank our Castorama Russia colleagues for their contribution to Kingfisher and wish them well for the future.”

The news comes a week after the company welcomed a “resilient” performance in the first-half of the year, with sales down by 1.1% to £5.9bn.

The group said this reflected the adverse impact of Covid-19 in Q1, which was later partially offset by “strong recovery” in the second quarter.

Pre-tax profit was up 23.1% to £415m, while e-commerce sales soared by 164%, and now account for 19% of total sales in the group.

The group attributed this to a DIY boom during lockdown, adding that the crisis is “creating new home improvement needs, as people seek new ways to use space or adjust to working from home”.

Back to top button