The transaction is expected to be completed in the first quarter of 2024
PPC is the new owner of “Kotsovolos” as a while ago the British group Currys announced the reaching of an agreement with the price (enterprise value) amounting to 200 million euros, without loans and excluding lease obligations. The net value, if transfer costs and various other factors are excluded, is estimated to be around 179 million euros.
The transaction is expected to be completed in the first quarter of 2024, subject to approval by the general shareholders' meeting of Currys and receive the green light from the competent competition authority, either the Greek or the European Commission's general competition directorate.
The agreement to acquire 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, the relevant announcement states. With the acquisition of Kotsovolos, PPC proceeds even faster in its transformation into an integrated provider of products and services.
Kotsovolos is a very strong and beloved brand in the Greek market, emphasizes PPC. The company has 95 stores in Greece and Cyprus, of which 27 are megastores. In addition to the extensive network of physical stores, Kotsovolos has an integrated, nationwide supply chain network with its own warehouses, privately owned fleet of vehicles and a large network of partners for installations of the devices. 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 was €49 million (based on IFRS 16) and bank borrowing 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.
The President and CEO of PPC, Mr. Georgios Stassis, said: “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, significantly accelerates the implementation of our business plan, which is based on three pillars, green growth, digitization 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 logistics network and transport infrastructure as well as IT systems to manage them.
PricewaterhouseCoopers Business Solutions S.A. (PwC) acts as financial advisor and the law firm V. Vyzas – G. Katrinakis, as legal advisor to PPC in the context of the acquisition.