Dixons has inked a deal to sell its French etail Pixmania business to German industrial holding company Mutares AG.
The deal is expected to be completed by the end of December. Dixons will provide £59m of ring-fenced funding to help develop the business.
Dixons group chief executive Sebastian James said: “I am delighted that we have been able to conclude consultations with the works councils so swiftly.
“This is testament to the strength of the plans that Mutares has for the business, and to the vision that they were able to share with our colleagues at Pixmania. I believe that the company has an exciting future, and I look forward to watching it flourish under new ownership.”
Head of Mutares France Aurélien Fauvel said: “I am very pleased that we are now able to proceed with this transaction following positive discussions with employee representatives. We firmly believe that Pixmania can achieve long-term success and can look forward with confidence.”
Pixmania generated losses before tax of £114.3m in the year to April 2013 on turnover of £397.7m, while it recorded retail operating losses of £31.3m. The loss-making business has dragged down Dixons’ trading performance over the last two years.
Dixons added: “The transaction is expected to be accretive to underlying earnings for Dixons Retail in the current financial year.”
Dixons paid £266m for a controlling stake of the company in 2006. Pixmania sells in 14 countries and also operates a software business that develops Internet platforms used by Carrefour SA and French clothing retailer Celio.