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

This post may contain links from our sponsors and affiliates, and Flywheel Publishing may receive compensation for actions taken through them.

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

Get Ready To Retire ^(Sponsored)

Start by taking a quick retirement quiz from SmartAsset that will match you with up to 3 financial advisors that serve your area and beyond in 5 minutes, or less.

Each advisor has been vetted by SmartAsset and is held to a fiduciary standard to act in your best interests.

Here’s how it works:
1. Answer SmartAsset advisor match quiz
2. Review your pre-screened matches at your leisure. Check out the advisors’ profiles.
3. Speak with advisors at no cost to you. Have an introductory call on the phone or introduction in person and choose whom to work with in the future

Get started right here.