GameStop acquires French retailer Micromania for $700 million
US retailer swoops for 332 stores as it enters second largest games market in Europe
US games retailer GameStop has acquired French chain Micromania from private equity fund L Capital, for approximately USD 700 million (EUR 480).
GameStop picks up all 332 Micromania stores in France, increasing its European store count to 1077.
"As we have accelerated our growth in Europe over the years, we have kept a close eye on the European retailers whose passion for the business is reflected in the quality of their stores and evident knowledge of their staff. Micromania has been that type of retailer," offered R. Richard Fontaine, executive chairman of GameStop.
"When the opportunity arose to purchase Micromania, and after meeting the executives who lead the company, we became convinced that expanding into Europe's second largest videogame market with Micromania's management team and GameStop's diverse experience was a great combination for profitable growth."
Before the acquisition, GameStop had no stores in France. The deal is subject to clearance and expected to close next month.
Daniel A. DeMatteo, GameStop's CEO added: "The transaction is a reflection of our belief that the European videogame market is growing and will be an important part of GameStop's worldwide growth.
"Historically, our most productive use of capital has, by far, been the addition of new stores whether opened organically or acquired. With the addition of Micromania, we have begun deployment of capital that we believe will help us achieve EPS growth of 25 per cent or more in fiscal 2009, and set GameStop up for continued growth in the years to come. We expect this acquisition to be accretive to our fully diluted EPS in both the fourth quarter of fiscal 2008 and fiscal 2009."
The acquisition brings the total number of GameStop stores worldwide to 5889. Current European locations include Italy, Germany, Ireland and Spain.
"Micromania is a terrific brand. I am particularly pleased that the GameStop management team recognised the impassioned quality and importance of our sales advisors and senior managers," commented Pierre Cuilleret, who will remain Micromania's president directeur general.
"With GameStop as a partner, and with their history of seeking out new growth opportunities, I am very enthusiastic about our potential to expand the brand that has been built for over 25 years in France."