Marks & Spencer Group PLC
20 March 2008
Issued: 20th March 2008
Marks and Spencer Group plc enters into joint venture
with COMS to expand in Central and Eastern Europe
Marks and Spencer Group plc (Marks & Spencer) and franchise partner COMS have
entered into a joint venture, with Marks & Spencer acquiring approximately 51%
of COMS, a.s. for €13.6m in cash plus deferred consideration of up to €5.2m in
cash based on business performance and the achievement of agreed targets.
COMS, a.s. operates 13 Marks & Spencer stores in the Czech Republic, Slovakia,
Latvia and Lithuania. The joint venture plans to open around 30 stores in these
markets, together with Estonia, over the next few years.
This announcement is in line with Marks & Spencer's plans to invest in its
existing franchise partners where it will facilitate a faster pace of growth and
greater operating efficiency. Marks & Spencer plans to grow its international
business to 15-20 per cent of Group revenues within the next five years.
COMS, a.s., one of Eastern Europe's leading private sector companies, has been a
franchise partner of Marks & Spencer since 1996 and has exclusive rights to
operate Marks & Spencer stores in the countries under a franchise agreement.
Marks & Spencer has purchased approximately 51 per cent of the share capital of
COMS, a.s. from Dusan Mrozek and Zbynek Mrozek, through its wholly-owned
subsidiary Marks and Spencer International Holdings Limited.
Carl Leaver, Director of International Business, Marks & Spencer, said:
'There is a great opportunity to open many more Marks & Spencer stores across
Central and Eastern Europe and grow a real presence in the region. The Marks &
Spencer brand is already well-recognised in the Czech Republic and there is
increasing demand for good quality, great value products in markets like
Slovakia. We have worked with the COMS team since 1996 and their retail
expertise and local knowledge make them the ideal partner.'
Dusan Mrozek, Chairman of the Board of Directors, COMS, a.s. said:
'We have worked with Marks & Spencer since 1996 and during that time we have
always felt we've been working with the right partner. We are therefore pleased
that we have successfully completed broader discussions and will now set up a
joint venture. We look forward to expanding our business across the region to
strengthen our market position'.
-Ends-
Notes to editors
Marks & Spencer (M&S) is one of the UK's leading retailers, offering high
quality, great value clothing, as well as home products and outstanding quality
food. M&S employs over 75,000 people and has over 600 stores in the UK and over
275 stores in 39 territories around the world. Marks & Spencer's total Group
revenues for 2006/7 were £8.5bn. In November 2007 at its interim results, Marks
& Spencer identified significant opportunities to grow its international
business under the leadership of Carl Leaver, its Director of International
Business, targeting a 15-20% contribution to its Group revenues within the next
five years. At its third quarter sales update on 9 January, Marks & Spencer
announced sales in its international business were up 15.1% (13 weeks to 29
December 2007).
www.marksandspencer.com/thecompany.
COMS, a.s. runs 10 Marks & Spencer stores in the Czech Republic in Prague, Brno,
Karlovy Vary and Ceske Budejovice. In 2007 the company initiated international
expansion with Marks & Spencer store openings in Lithuania and Slovakia. The
international stores are being run by COMS, a.s. via fully owned companies
registered in respective countries. COMS, a.s. offers Czech customers quality
Marks & Spencer fashion, cosmetics, food and consumer goods on 11 000 square
meters of floor space.
Contact details
M&S Corporate Press Office: +44 (0)20 8718 1919
Out of hours +44 (0)20 8718 2000
M&S Investor Relations:
Amanda Mellor +44 (0)20 8718 3604
Majda Rainer +44 (0)20 8718 1563
M&S Press Office in Czech Republic:
Irena Zatloukalova 00 420 724 442 920, irena.zatloukalova@ogilvy.com
Milan Kri 00 420 602 266 316, milan.kriz@ogilvy.com
COMS press office:
Renata Fiserov 00 420 603 533 233
Renata.fiserova@marks-and-spencer.cz
This information is provided by RNS
The company news service from the London Stock Exchange
*A Private Investor is a recipient of the information who meets all of the conditions set out below, the recipient:
Obtains access to the information in a personal capacity;
Is not required to be regulated or supervised by a body concerned with the regulation or supervision of investment or financial services;
Is not currently registered or qualified as a professional securities trader or investment adviser with any national or state exchange, regulatory authority, professional association or recognised professional body;
Does not currently act in any capacity as an investment adviser, whether or not they have at some time been qualified to do so;
Uses the information solely in relation to the management of their personal funds and not as a trader to the public or for the investment of corporate funds;
Does not distribute, republish or otherwise provide any information or derived works to any third party in any manner or use or process information or derived works for any commercial purposes.
Please note, this site uses cookies. Some of the cookies are essential for parts of the site to operate and have already been set. You may delete and block all cookies from this site, but if you do, parts of the site may not work. To find out more about the cookies used on Investegate and how you can manage them, see our Privacy and Cookie Policy
To continue using Investegate, please confirm that you are a private investor as well as agreeing to our Privacy and Cookie Policy & Terms.