Debenhams Regulatory News (DEB)

8 Aug 2006 09:15

Debenhams plc08 August 2006 8 August 2006 DEBENHAMS plc Debenhams Acquires Nine Stores in Ireland and steps up UK opening programme Debenhams plc announces that a contract has been signed today for theacquisition from Roches Stores of nine leasehold stores in the Republic ofIreland. The acquisition, an asset purchase by Debenhams Retail (Ireland) Limited, willbe for a consideration of €29 million plus the value of stock. The €29 millionis payable in three instalments, €15 million at completion, €5 million on thefirst anniversary and €9 million on the second anniversary following completion.The acquisition will be funded from existing cash and bank facilities. The stores, which are in Henry Street, Dublin; Blanchardstown; Blackrock;Tallaght; Cork; Limerick; Tralee; Galway and Waterford, have a total tradingspace of 500,000 sq ft. Debenhams will acquire the assets in these stores andthe properties will be leased to Debenhams. The acquisition is expected to beearnings enhancing during the financial year ending August 2008. Debenhams intends to convert the stores and introduce its unique mix of designerproducts, concessions and international brands over a period of six to twelvemonths. Completion is subject to a number of conditions including Irish CompetitionAuthority clearance. Rob Templeman, Chief Executive Officer, Debenhams, said: "There are significantopportunities to grow our department store portfolio across the UK and Republicof Ireland at attractive returns. We are pleased to announce the acquisition ofnine stores in the Republic of Ireland today, which considerably boosts ourlocal presence". These further nine stores will bring the total number of Debenhams' stores inthe UK and Republic of Ireland to 135, including existing stores in Dublin, Corkand Newbridge and four Desire by Debenhams stores. At the time of admission to the London Stock Exchange on 9th May 2006, Debenhamsreported that it had signed contracts to open 21 new department stores by theend of the 2011 financial year. Since that time, the Doncaster and Workingtonstores have opened and further contracts have been signed for four additionaldepartment stores in the UK, at White City (London), Bury (Greater Manchester),Livingston and Newport (Gwent). Contracts for four Desire by Debenhams stores (in addition to the four existingstores) have also been signed, three of which will be open before Christmas (atBirmingham Fort, Kirkcaldy and Merthyr Tydfil) and the other, atWalton-on-Thames, before Easter next year. Debenhams will give an update on trading for the year ending 2 September, 2006on Monday 18 September, 2006. Preliminary results for the year ending 2September will be announced on 24 October, 2006. -ends- Enquiries: Media Gainsborough Communications Andy Cornelius 020 7190 1703 Duncan Murray 020 7190 1704 Analysts Debenhams plc Rob Templeman, Chief Executive Chris Woodhouse, Finance Director This information is provided by RNS The company news service from the London Stock Exchange