The French electronics and appliance retailer Fnac Darty has acquired Italy’s Unieuro, with assistance from its major shareholder, Czech billionaire Daniel Kretinsky. The deal, contingent upon regulatory approval, creates a formidable entity in home furnishings, boasting over €10 billion in annual sales from 1,500 stores. Fnac Darty now holds 71.5% of Unieuro’s shares and aims for further stakeholder participation. The acquisition, valued at €249 million, will expand Fnac Darty’s footprint in Italy’s market.
The Fnac Darty group, renowned for its electronics and home appliance retail, has made a significant move by acquiring Italy’s leading electronics retailer, Unieuro. This acquisition, supported by Czech billionaire Daniel Kretinsky, aims to establish a powerful entity in the home furnishings industry, boasting annual revenues exceeding €10 billion across 1,500 stores, pending regulatory approval.
Following a takeover bid initiated on September 2, Fnac Darty has successfully obtained 71.5% of Unieuro’s capital, as stated in a recent press release. Specifically, 67.1% of the shares were contributed during the bid, in addition to the 4.4% previously owned by Fnac Darty. The offer will reopen from November 4 to 8, providing “more shareholders the opportunity to tender their shares on unchanged terms,” according to the statement. Fnac Darty’s CEO, Enrique Martinez, expressed enthusiasm, stating, “We are delighted to announce that we have received the support of 71.5% of Unieuro shareholders for our proposed acquisition, exceeding the minimum threshold we had set.” He further added, “We are very excited and looking forward to working with Unieuro’s teams as soon as regulatory approvals have been obtained.”
Recently, the European Commission issued an initial approval for the takeover, though formal acceptance is still pending. The acquisition values Unieuro at €249 million. Earlier in October, Fnac Darty revised the minimum acceptance threshold for the bid from 90% to 66.67% to facilitate transaction success. To proceed with the delisting of Unieuro, the initial 90% benchmark must ultimately be met.
Industry Consolidation
In late August, the board of directors at Unieuro could not reach a consensus to accept Fnac Darty’s takeover bid. Mid-July, Fnac Darty made its intentions clear to acquire the Italian group with backing from its major shareholder, Kretinsky. The plan involves establishing a joint investment firm with Ruby Equity Investment, a subsidiary owned by Kretinsky. This new entity will hold the stake in Unieuro, with Fnac Darty retaining 51% and Ruby owning 49%, ensuring that Fnac Darty controls operations. “Fnac Darty and Ruby welcome the contribution of a large majority of Unieuro’s capital paving the way for a fruitful industrial partnership,” the announcement read.
Martinez has consistently advocated for industry consolidation. He remarked, “We are observing a period of consolidation in many businesses, and distribution too must strengthen itself to give itself the means to compete on a global level,” in a discussion with AFP back in July. He also highlighted that this acquisition could be achieved with “very limited financial exposure” due to his shareholder’s support, which would allow for “other projects.” The purchase of Unieuro would enable Fnac Darty to enter the Italian market, where it currently lacks a presence.
Unieuro, listed on the Milan Stock Exchange and capturing 17% of the Italian market, employs approximately 5,000 individuals and operates over 500 stores with annual sales of €2.6 billion. The majority of its locations are situated in northern and central Italy. In contrast, Fnac Darty has a robust presence in Spain, Portugal, Belgium, Switzerland, Luxembourg, Tunisia, Qatar, Côte d’Ivoire, Cameroon, Congo, Senegal, and Saudi Arabia. By the close of 2023, the group anticipates managing around 1,000 stores and employing 25,000 staff members, with projected sales nearing €8 billion.