Best Buy to Deal European Business to Carphone Warehouse
May 1, 2013,
MINNEAPOLIS-Best Buy has reached an agreement to sell its 50 percent interest in Best Buy Europe to Carphone Warehouse, the company with whom it created this joint venture in 2008.
The purchase price will be $775 million, comprised of about 84 percent cash and the remaining in Carphone Warehouse stock, and is subject to certain conditions. The boards of directors of both companies have approved the transaction, which is also awaiting the approval of Carphone Warehouse's shareholders. It's expected to close by the end of June.
Hubert Joly, Best Buy's president and CEO, said, "This transaction allows us to, one, simplify our business, two, substantially improve our return on invested capital, one of the five pillars of our Renew Blue transformation, and, three, strengthen our balance sheet."