British electrical retailer Currys announced the sale of its Greek business Kotsovolos, one of its best-performing subsidiaries, with an estimated turnover of more than 700 million euros and profits of more than 20 million euros for the financial year 1/5/2022-29/4/2023.
Currys follows a process that is almost like an open invitation to prospective investors, something that is not common in the Greek sector, showing that it is setting a high price bar for the Greek chain and certifying its intention to achieve the best result, taking advantage of the positive situation.
The British parent company needs liquidity and the messages from the Western European electrical and electronics retailer, where it operates, are not positive. Consumption in Europe is under strong pressure due to the ongoing inflationary wave.
The usual price
Companies in the electrical and electronic goods sector are usually sold at a valuation of 3-5 times their earnings, but in the case of Kotsovolos it would not be unlikely to see the price exceed 7-8 times the company’s profitability, given that the chain has a leading market share, which reaches an average of 40% of electrical and electronic goods, has an extensive and well located network of stores throughout Greece, with the majority of turnover coming from Attica and the rest from Thessaloniki and the region.
The most important of all, however, is that Kotsovolos has one of the best, largest and fully informed customer bases that surpass even the retail banks, combined with the quality elements that the chain has built over decades in serving its customers.
Experts in the sector estimate that specific international companies operating in the wider retail sector, that have a direct relationship with Greece on a personal and business level, as well as extensive experience in the consumer market, will express interest.
However, an expression of interest from a fund is not excluded.