Dixons in £230m UniEuro takeover

Dixons, the UK's largest electronics retailer, yesterday agreed to pay €368m (£230m) to take control of UniEuro, Italy's most profitable chain of domestic appliance stores.

The purchase of the 71 per cent stake from a consotrium of investors, including JP Morgan, Rhone Capital and Sofipa, takes Dixons ownership of UniEuro to nearly 96 per cent.

Dixons has the option to buy the remaining 4 per cent, presently owned by UniEuro's management, in July 2004 for €29.8m.

Dixons expects the increased stake will boost earnings per share before goodwill amortization by as much as 3 per cent this fiscal year. Shares in Dixons closed up nearly 4 per cent at 161p.

UniEuro currently has the second-largest market share in Italy. It has 88 outlets, mainly out-of-town superstores, in the north west and north east of Italy

John Clare, the chief executive of Dixon's, said: "UniEuro is a highly successful business with well-developed plans for future growth including a significant increase in the number of stores in new regions of Italy. It is the ideal partner for Dixons in Italy." Mr Clare is keen to expand further in France and Spain. The company has more than 1,280 stores across the UK, Ireland, the Nordic region, Spain, France, Italy and Hungary.