UK-based electrical retailer and services company Dixons Retail plc (LON:DXNS) said today it would take a further 22% stake in its 77%-owned unit PIXmania SAS for EUR10m (USD12.3m) in cash.
The transaction comes to support Dixons’ plan to give a boost to its strategically important business. The buyer agreed the deal with the target company’s founders Steve and Jean-Emile Rosenblum. It expects to finalise the buy later today.
Dixons’ UK and Ireland multi-channel operations are based on PIXmania’s e-Merchant platform. By boosting its shareholding in the firm, Dixons seeks to take full command of the business. It said it also intended to take measures to improve PIXmania’s performance, as the unit’s own trading business was facing huge challenges.
“PIXmania is the heart of our very successful UK multi-channel business and this acquisition will ensure the stability and flexibility to continue to improve the experience for the customers of that business,” said Dixons chief executive Sebastian James.
Digital photography and consumer electronic goods e-tailer PIXmania is currently doing business in 26 countries through its websites. In its fiscal 2011/12 through April, Dixons reported total PIXmania revenues of GBP665m (USD1bn/EUR845m), while its own sales stood at GBP8.19bn. PIXmania posted an underlying operating loss of GBP19.8m, while Dixons booked an underlying profit of GBP128.7m.