Metro Mulls Floating its DIY Unit
June 20, 2005Metro, Germany's leading retail and distribution group, said Monday is considering selling its DIY subsidiary Praktiker or listing it on the stock exchange. "Over the coming months, we will be conducting a comprehensive review of all strategic options available for our home improvement and DIY sales division, Praktiker," Metro said in a statement. "Alternatives for consideration include a divestiture of the company as well as a potential listing of a majority stake through an initial public offering (IPO)," the statement said. Another option was to develop the unit within the Metro group. Investment bank JP Morgan had been taken on to help evaluate the different options. "Based on the successful repositioning and sustainable profitability improvements of its German operations, as well as the achievement of leadership positions in high-potential markets in eastern Europe, Praktiker is now excellently positioned for further growth either within Metro Group or on a stand-alone basis," said Metro chairman Hans-Joachim Körber. Praktiker is one of the leading DIY operators in Europe with sales of around three billion euros ($3.7 billion) and operating profit of 59 million euros. It 339 home improvement and DIY centers in nine European countries, with eastern Europe accounting for just over one fifth of group sales.