THE INFORMATION CONTAINED HEREIN IS NOT FOR PUBLICATION OR DISTRIBUTION, DIRECTLY OR INDIRECTLY IN THE UNITED STATES. THIS ANNOUNCEMENT DOES NOT CONSTITUTE OR FORM PART OF ANY OFFER OR INVITATION TO PURCHASE, OTHERWISE ACQUIRE, SUBSCRIBE FOR, SELL, OTHERWISE DISPOSE OF OR ISSUE, OR ANY SOLICITATION OF ANY OFFER TO SELL, OTHERWISE DISPOSE OF, ISSUE, PURCHASE, OTHERWISE ACQUIRE OR SUBSCRIBE FOR, ANY SECURITY IN THE UNITED STATES. NO MONEY, SECURITIES OR OTHER CONSIDERATION IS BEING SOLICITED FROM PERSONS IN THE UNITED STATES AND, IF SENT IN RESPONSE TO THE INFORMATION CONTAINED HEREIN, WILL NOT BE ACCEPTED
CERBERUS EUROPEAN INVESTMENTS, LLC ("Cerberus")
FOCUS (DIY) Limited ("Focus")
ACQUISITION OF FOCUS (DIY) TO BE COMPLETED
Having today received clearance from the European Competition authorities, Focus
and Cerberus are pleased to announce that the completion of the acquisition
of Focus DIY by a company backed by funds and/or managed accounts affiliated
with Cerberus, will take place on 26 July. On that day, the new management team
will join the business and will be led by Bill Grimsey as Chief Executive, with
Bill Hoskins as Finance Director.
After completion, Focus will have significantly lower cash paid debt than previously.
As a result, Focus will be able to invest in building on its differentiated
market position with a capital structure that will support the development of
the business.
As announced on 18 June, the new management team will engage Hilco to assist
with operational changes required at Focus. Following a detailed analysis of
the business, 52 non-core underperforming stores have been identified that will
be managed by Hilco, once completion has occurred, as part of their exit from
Focus. This will enable the management team to fully focus on driving growth
across a profitable and well located core estate of 203 stores. These under
performing stores will continue to trade until they are either sold to other
operators or closed. It is anticipated that this exercise will be completed
in the first quarter of 2008.
Cerberus is confident that Focus is well placed to grow with its new management
team and capital structure. Upon completion, Bill Grimsey and his team will
complete a full review of the business in order to complete investment and development
plans. A key priority will be the development of more productive supplier partnerships
across the business, with Focus' first supplier conference since 2004 to be
held on 27 July 2007.
Bill Grimsey, to be appointed as Chief Executive of Focus DIY on completion,
commented "Prior to this transaction, the stability of the business was
not assured. Today, this quality business has the potential to be one of the
most successful operators in the DIY sector. With a new capital structure and
much needed investment, we believe Focus will grow from strength to strength,
ensuring that customers in our target markets make Focus their first choice
for all their DIY needs.
The completion of the transaction will enable stakeholders in the Company, including
employees, pensioners and suppliers to be part of a re-invigorated business.
We look forward to working with colleagues and suppliers to deliver the full
potential of this business going forward."
Enquiries:
Hudson Sandler
Andrew Hayes/Jessica Rouleau
+44 (0)20 7796 4133
