MFI Furniture sells French unit to Nobia |
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Published
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Tue, 14 Feb 2006 15:20
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LONDON: MFI Furniture Group Plc. has sold its French kitchen and bathroom business, Hygena Cuisines SA, to Nobia AB for 135 million euros (92 million pounds).
The troubled retailer said in a statement the decision to sell the unit is part of the strategic review of the group's business being conducted by Matthew Ingle following his appointment as chief executive in October.
The sale deal has a provision for MFI to continue to supply Hygena Cuisines with kitchen furniture products for the next three years. Hygena Cuisines has 138 outlets and employs 900 people.
While Nobia will have the Hygena brand, MFI will be able to expand its Howden Joinery business with its 12 depots in France, outside the UK.
The company will use the funds generated from the sale to reduce its bank debt.
MFI's board, as part of the strategic review, had decided to focus resources on its U.K. operations -- Howden Joinery and the U.K. retail chain.
Ingle said the sale and the cash derived from it will strengthen the company's ability to focus on recovery and growth in the U.K.
The deal has been supported by the Hygena Cuisines Works Council and the business will continue to be managed by the current management team, the company said.
Hygena Cuisines had a turnover of 195.2 million euros and a pretax profit of 8 million euros for the year ended 31 December 2005.
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