Gokongwei-led Robinsons Retail Holdings Inc. (RRHI) has signed a deal to buy a 90 percent stake in consumer electronics and home appliances chain operator Savers Electronic World Inc. in a bid to expand the company’s retail portfolio.
Dubbed as a “joint venture,” RRHI said in a disclosure that the acquisition of 90 percent of Savers Electronic World on Tuesday would include 24 stores of Saver’s Appliance Depot in RRHI. The 24 stores will add 25,900 square meters (sqms) of gross floor area to RRHI’s portfolio.
Saver’s Appliance Depot is the consumer electronics and home appliances chain of Savers Electronic World.
“[The transaction is set] to further expand and strengthen RRHI’s presence in the consumer electronics and appliances segment,” the company said.
The disclosure said the nature and amount of consideration given or received was “less than 10 percent of RRHI’s stockholders equity as of end-December 2014.”
According to its 2014 annual report, RRHI’s stockholders equity reached P41.23 billion, which could mean that the transaction price would be in the range of P4.12 billion maximum.
Saver’s Appliance Depot has three stores in Metro Manila, 13 stores in Central Luzon and eight stores in Cagayan Valley.
In a separate statement, the Gokongwei-led retailer said the partnership with Saver’s Appliance will strengthen its coverage in consumer electronics and appliance business mostly in Central Luzon and Cagayan Valley.
After the deal, Saver’s stores will still be managed by Jaime Uy, who is the managing director of Saver’s Appliance Depot.
“We are excited to partner with Saver’s Appliance Depot in growing the consumer electronics and appliance business of the group. As the economy expands, discretionary spending is seen to surge ahead and this format should be a strong beneficiary. Also, the increasing scale of the group is expected to strengthen our market position in the industry,” said Robina Gokongwei-Pe, president and chief operating officer of RRHI.
Jaime Uy of Saver’s, for his part, said: “We are happy to become part of the Robinsons Retail family. The group has proven track record in growing and retaining the equity value of the companies or businesses that they acquired. We have strong presence in Northern Luzon, which should add to the group’s growing presence in this region.”
In the first half of the year, RRHI saw its net income increase by 25.9 percent to P1.95 billion from P1.55 billion a year ago on strong sales.
For the whole of 2015, the company is targeting to grow its margins by 20 percent to 40 percent while same store sales are seen to grow at the same pace of 2 percent to 3 percent.
RRHI has budgeted P6 billion for this year’s expansion to add up to 350 stores this year, growing its total store network to 1,600 by the end of 2015. As of end-June this year, the firm is operating 1,399 stores in its portfolio, with a total floor area of 901,000 sqms.
The company’s existing retail brands include Robinsons Supermarket, Robinsons Easymart, Robinsons Selection, Handyman Do it Best, A.M. Builders’ Depot, True Value, Topshop, Topman, Shiseido, Benefit, Toys “R” Us, Daiso Japan, Ministop, Costa Coffee and South Star drug store chain, among others.
Incorporated in 2002, Robinsons Retail is owned by the Gokongwei family to operate its six retail businesses — supermarkets; department stores; DIY stores; convenience stores; drug stores; and specialty stores.