GameStop Grows EU Ops With Micromania Buyout (GME)

Banking, finance, and taxes

Published: October 1, 2008 8:18 am

Last Updated: April 27, 2020 9:52 pm

GameStop (NYSE: GME) has reached a deal to make another video game chain acquisition. It is in a definitive agreement to acquire Micromania. This chain is France’s leading video game retailer with 332 locations throughout the country from private equity fund L Capital. This is another key geographic add-on for GameStop.

What is interesting is that despite GameStop having locationsthroughout Europe, it really had no presence in France. This isn’tgoing to be a massive addition to its total ranks when you consider it has5,557 combined retail stores throughout the United States and abroad in15 more countries, but it does fill a large hole in its EU presence.

The approximate $700 million deal after the assumption of debt issubject to regulatory clearance in the EU and is expected to close inNovember 2008. GameStop is using cash on hand, a draw on its creditfacility, and via a committed term loan from B of A.

The company says this is part of its capital deployment to reach 25%earnings growth in 2009. It also noted that this is expected to beimmediately accretive to earnings.

GameStop shares are up 0.5% at $34.40 in early indications today. Its 52-week trading range is $32.80 to $63.77.

Jon C. Ogg
October 1, 2008

Are You Ahead, or Behind on Retirement? (sponsor)

If you’re one of the over 4 Million Americans set to retire this year, you may want to pay attention.

Finding a financial advisor who puts your interest first can be the difference between a rich retirement and barely getting by, and today it’s easier than ever. SmartAsset’s free tool matches you with up to three fiduciary financial advisors that serve your area in minutes. Each advisor has been carefully vetted, and must act in your best interests. Start your search now.

Don’t waste another minute; get started right here and help your retirement dreams become a retirement reality.