// Kingfisher sells Russian Castorama division to domestic chain Maxidom for £73m
// The sale to Maxidom marks the first sale since Kingfisher’s new CEO Thierry Garnier joined
Kingfisher has offloaded its Castorama division in Russia to domestic chain Maxidom in a £73 million deal.
The B&Q and Screwfix owner sold the Russian Castorama division on Wednesday, with 80 per cent of the sale price paid at the point of transaction and the remaining 20 per cent to be paid in instalments over the next two years.
Kingfisher first revealed plans to sell the Russian operations alongside those in Portugal and Spain back in 2018, in an effort to focus on UK, France and Poland markets.
READ MORE: Kingfisher profits surge as Brits lean towards DIY post-lockdown
However, the group had struggled to offload the chain before now.
The sale of the business to Maxidom marks the first sale since the appointment of Kingfisher’s new chief executive Thierry Garnier.
“I am pleased to announce the completion of the sale of Castorama Russia to Maxidom,” Garnier said.
“I would like to thank our Castorama Russia colleagues for their contribution to Kingfisher and wish them well for the future.”
Last week, the group’s overall sales slipped 1.3 per cent to £5.9 billion, which reflected the adverse effects across the business due to the Covid-19 pandemic.
Like for like sales also dropped 1.6 per cent, with growth at B&Q in Poland and Romania offset by France, Screwfix, Russia and Iberia.
Profits grew 17.4 per cent to £533 million, while profit margins rose by nine per cent.
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