UK’s EV Retail acquires France's Paminvest for $104.9 million

Luxembourg-based merchandise stores operator B&M European Value Retail SA announced it has acquired French discount retailer Paminvest SAS, which operates a chain of 95 French stores trading under the name Babou.

The move was made by B&M subsidiary UK-based retailing company EV Retail Ltd and the total enterprise value of the deal was 91.2 million euros ($104.9 million), including B&M's refinancing of Babou's debt.

The acquisition was made in cash and was financed through a loan facility.

The deal is expected to immediately enhance earnings for B&M, but Babou's earnings are likely to be hurt in the short-term by a change in products as it is brought into alignment with B&M's current offering. In the year to January 31, Babou recorded revenue of $399.3 million.