Home Retail Group sells Homestore+More for €13m

Argos and Homebase owner Home Retail Group has sold its 33pc stake in Irish chain Homestore + More for a total consideration of almost £11m (€13m).

Home Retail revealed the sale in its full-year results this morning and said the disposal had been completed in March.

Homestore + More operates 13 outlets in Ireland. Home Retail received £9.7m (€11.5m) for the holding in Ogalas, which trades as Homestore + More, and also got a £1.2m loan repayment.

“After taking account of transaction costs, the proceeds approximate to the carrying value of the group’s investment in Ogalas so no material profit or loss is expected on the sale,” said Home Retail when it issued full-year results this morning.

The other shareholders in Homestore + More, including managing director Jonathan Stanley, have bought back the Home Retail stake.

Home Retail had initially acquired the stake a number of years ago with a view to launching the concept in the UK. However, while it did undertake a trial there, the format didn’t work in the British market.

Homestore + More generated turnover of €40.6m in the year to the end of January 2012, up from €30.5m a year earlier. It made a pre-tax profit of €1.9m, which was up from €405,000 in 2011.

Source : Independent.ie
www.independent.ie/business/irish/home-retail-sells-homestoremore-for-13m-29235378.html