DEI has finalized its acquisition of Kotsovolos, a renowned electronics retailer, for €200 million. This agreement, following a contract signed with Currys plc, notes that the purchase price is exclusive of Kotsovolos's borrowing, cash reserves, and lease liabilities in accordance with IFRS 16.

This acquisition signifies a strategic pivot for DEI, positioning it at the forefront of the rapidly evolving global market, which is heavily influenced by the transition to renewable energy and the burgeoning demand for electrification. By integrating Kotsovolos, DEI accelerates its expansion as a provider of diverse products and services, catering to both individual and business needs.

Kotsovolos, with its robust presence and popularity in the market, operates 95 stores, including 27 flagship megastores throughout Greece and Cyprus. The retailer’s comprehensive logistics network spans the entire nation and includes proprietary warehouses, a fleet of vehicles, and a substantial partnership network for product installations. Kotsovolos also maintains an effective omnichannel sales strategy that encompasses physical stores, a dedicated call center, and a robust e-commerce platform through kotsovolos.gr.

In the fiscal period from May 1, 2022, to April 29, 2023, Kotsovolos achieved a turnover of €733 million—a 12% increase from the previous year. Its EBITDA stood at €49 million, as per IFRS 16, while its bank borrowing was close to zero. These strong financial results reflect Kotsovolos's adept management and set optimistic expectations for the upcoming fiscal year.

Georgios Stassis, Chairman and CEO of DEI, remarked, "With this acquisition, DEI evolves into a new entity, becoming a holistic provider focused on customer satisfaction across digital and physical domains. This move, integral to our €9 billion investment strategy, propels our operational plan forward, resting on three fundamental pillars: green growth, complete digitization, and a customer-centric approach."

DEI plans to finance this acquisition with its own funds.

It is anticipated that this acquisition will result in approximately €100 million in cost savings. These savings stem from the foregone need to develop a new logistics network, transportation infrastructure, and IT systems, as initially projected in the investment plan.

The finalization of this transaction is expected within the first quarter of 2024, pending standard regulatory approvals, including the sanction of Currys plc's shareholders and either the European Commission or the Hellenic Competition Commission.

PricewaterhouseCoopers Business Solutions S.A. (PwC) is serving as the financial advisor, while the law firm V. Vyzas - G. Katrinakis is providing legal counsel to DEI in this acquisition process.