By Dimitra Manifava
In a significant development, PPC, the Greek energy company, has emerged as the new owner of the popular retail brand "Kotsovolos." This transition was facilitated through a deal with the British group Currys, valuing the acquisition at €200 million, entirely free from loans and lease obligations. The net value, after excluding transfer costs and other considerations, is estimated at approximately €179 million.
The completion of this transaction is anticipated in the first quarter of 2024, subject to approval by Currys' general shareholders' meeting and the requisite clearance from competition authorities, be it the Greek or the European Commission's general competition Directorate.
For PPC, this acquisition represents a strategic move in a changing global market. As the world undergoes an energy transition and embraces new electrification solutions for households and businesses, PPC aims to position itself as a comprehensive provider of products and services. Kotsovolos, a beloved brand in the Greek market, becomes a vital asset in achieving this goal.
Kotsovolos boasts an extensive presence with 95 stores in Greece and Cyprus, including 27 megastores. Beyond its physical locations, the company operates a nationwide supply chain network, complete with warehouses, a fleet of vehicles, and a network of installation partners. Its multi-channel sales network encompasses physical stores, a call center, and a successful e-shop (kotsovolos.gr).
For the financial year spanning May 1, 2022, to April 29, 2023, Kotsovolos reported a turnover of €733 million, reflecting a 12% increase compared to the previous year. EBITDA reached €49 million (based on IFRS 16 standards), and the company maintained minimal bank lending. These strong financial results create positive expectations for the upcoming fiscal year.
George Stasssis, President and CEO of PPC, expressed his enthusiasm, stating, "With the completion of the agreement, PPC transforms into a comprehensive, customer-focused provider of products and services, both in the digital and physical realms. The acquisition of Kotsovolos, a part of our €9 billion investment plan, significantly accelerates the execution of our business strategy, which centers on green growth, digitization, and customer-centricity."
PPC plans to finance this acquisition primarily through equity. Notably, the acquisition of Kotsovolos is projected to yield approximately €100 million in savings, which were initially earmarked for the creation of a logistics network, transportation infrastructure, and IT systems management, in alignment with their investment plan.
The acquisition has received financial advisory support from PricewaterhouseCoopers Business Solutions S.A. (PwC) and legal counsel from the law firm B. Vyzas - G. Katrinakis. This strategic move marks a significant milestone for both PPC and the retail landscape in Greece.
[This article was translated from its Greek original]
