RETAIL group PPR is in exclusive talks to sell its Conforama furniture unit to Steinhoff International Holdings, the company said yesterday as it moves away from retail in favor of sport, lifestyle and luxury.
The French luxury group led by Francois-Henri Pinault said the deal valued the business at €1.2bn (£1bn) in cash, while the working capital balance Conforama was due to pay PPR would be repaid on closing.
This puts the total value of the deal for PPR at around €1.6bn, a source familiar with the matter said.
PPR has been looking for buyers for Conforama for about three years and has said it plans to return to the acquisition trail once it has disposed of its retail business. It wants to build a sports and lifestyle unit around Puma, the German brand in which it owns 71 per cent.
City A.M. Reporter