Public Power Corporation (PPC) announced an agreement with Currys for the acquisition of Kotsovolos with a price that corresponds to an enterprise value of 200 million euros, on a debt free, cash free basis and excluding IFRS 16 lease liabilities.
Following the acquisition of Kotsovolos, PPC is expected to become an integrated provider of products and services.
Kotsovolos owns 95 stores, in Greece and Cyprus, of which 27 are megastores. In addition to the extended network of physical stores, Kotsovolos owns an integrated, nationwide supply chain network with its own warehouses, a privately owned fleet of vehicles and a large network of partners for the installation of the appliances. It has an omnichannel sales network which, in addition to physical stores, includes a call center and a successful e-shop (kotsovolos.gr).
In the financial year 01.5.2022 – 29.4.2023, Kotsovolos’ turnover amounted to 733 million euros marking an increase of 12% compared to 2022, EBITDA amounted to 49 million euros. (on an IFRS 16 basis) with almost zero bank debt. Such results achieved by the successful management of Kotsovolos create positive expectations for the financial results of next financial year.
“With the completion of the agreement, PPC will be a different company: An integrated, customer – oriented provider of products and services on both digital and physical level. The agreement for the acquisition of Kotsovolos, as part of our 9-billion-euro investment plan, significantly accelerates the implementation of our business plan, which lies on three pillars, our own green deal, digitalization of all operations and customer centricity,” PPC Chairman and CEO, George Stassis said.
Moreover, PPC intends to finance the acquisition through its own funds.
The acquisition of Kotsovolos will result in the saving of around 100 million euros, which as per business plan of PPC, was budgeted for the creation of the logistics, delivery, and its ICT infrastructure.
The conclusion of the transaction is expected to take place in the first quarter of 2024 and is subject to certain conditions precedent, customary for these kinds of transactions, including the approval of shareholders at the General Meeting of Currys plc and merger control clearance from the European Commission or the Hellenic Competition Commission.
PricewaterhouseCoopers Business Solutions S.A. (PwC) is acting as financial advisor and Vizas – Katrinakis and Associates Law Firm as legal advisor to PPC in connection with the acquisition.
