Department store operator Debenhams last week bought Danish department store group Magasin du Nord for £12.3m, providing a bridgehead into Europe.
Debenhams chief executive Rob Templeman said there was a close fit between the businesses and that the acquisition would be “highly accretive” for shareholders as infrastructure benefits and economies of scale kicked in.
Debenhams already has a strong overseas presence with 52 franchised stores in 17 countries. Templeman said: “The success of our international business demonstrates that there is demand for our own-bought and Designer brands outside our home market which we believe will complement Magasin’s existing brands.”
The acquisition followed fundraising by Debenhams in June. Oriel analyst Eithne O’Leary said although the acquisition was relatively small, it showed Debenhams would be disciplined in its spending and may flush out other deals.
She said: “Management has demonstrated that it will not be spooked into doing a deal at the wrong price. This deal may prove an encouragement to reluctant sellers.”
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