Business appliance retailer Office Depot, Inc. announced that it has completed the acquisition of the business of Elso Iroda Superstore Kft, which has been operating Office Depot retail stores and direct sales businesses in Hungary under license from Office Depot.
The acquisition will be Office Depot's first expansion into Eastern Europe as a wholly owned business, rather than under licensed arrangements.
The company currently operates three retail stores, a distribution center, and Internet sales facility in Hungary and will open a fourth retail store later this year. Current plans call for additional retail expansion up to a total of 17 stores in Hungary by the end of 2006, as well as a new distribution center to serve that country and possibly adjacent countries as well. Estimated revenues of the company for 2004 are U.S. $25 million.
The business in Hungary was acquired from its parent entity, Retail Holdings Hungary, Inc. of Miami, FL, U.S. and New York, NY, U.S. The business will be operated under the management of Office Depot Europe, headquartered in Venlo, The Netherlands. The purchase price is announced at $10 million, a portion of which is deferred. Other terms of the purchase were not disclosed.
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