Filenews 3 November 2023
PPC signed an agreement with Currys plc for the acquisition of Kotsovolos, for a consideration corresponding to a company value of €200 million, excluding borrowings, cash reserves of the company and excluding leases under IFRS 16.
The agreement for the acquisition of Kotsovolos is for PPC a strategic transformation move, in a market that is changing globally, as the era of energy transition and new electrification creates a whole new world of solutions for households and businesses.
With the acquisition of Kotsovolos, PPC proceeds even faster in its transformation into an integrated provider of products and services.
As PPC mentions, Kotsovolos is a very strong and beloved brand in the Greek market. The company has 95 stores in Greece and Cyprus, including 27 megastores. In addition to the extensive network of physical stores, Kotsovolos has an integrated, nationwide supply chain network with its own warehouses, its own fleet of vehicles and a large network of partners for device installations. It has an omnichannel sales network that, in addition to physical stores, includes a call center and a successful e-shop (kotsovolos.gr).
For the financial year 1.5.2022 – 29.4.2023, Kotsovolos had a turnover of € 733 million, showing an increase of 12% compared to 2022, EBITDA amounted to €49 million (on the basis of IFRS 16) and bank lending was almost zero. The above results produced in the context of the successful management of Kotsovolos create positive expectations for the figures of the next financial year.
PPC's President and CEO, Mr. George Stassis, stated: "With the completion of the agreement, PPC will be another company: An integrated, customer-centric provider of products and services on a digital and physical level. The acquisition of Kotsovolos, as part of our €9 billion investment plan. It significantly accelerates the implementation of our business plan, which is based on three pillars, green growth, digitalization of all operations and customer-centricity."
PPC intends to finance the acquisition through equity.
It is noted that the acquisition of Kotsovolos will bring savings of approximately €100 million, which, according to the investment plan, was intended for the creation of a logistics network and transport infrastructure as well as IT systems for their management.
The completion of the acquisition is expected to take place in the first quarter of 2024 and is subject to customary approvals for such transactions by competent authorities, including shareholder approval at the General Meeting of Currys plc as well as either the European Commission or the Hellenic Competition Commission (conditions precedent).
PricewaterhouseCoopers Business Solutions S.A. (PwC) is acting as financial advisor and V. Vyzas – G. Katrinakis Law Firm as legal advisor to PPC in the context of the acquisition.