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Photo-Me to buy Asda's Photo Division for c.£5.35m

By BFN News | 07:38 AM | Tuesday 23 August, 2016


Photo-Me has agreed to buy Asda Stores' Photo Division, which is operated in Asda stores in the UK. Total consideration is estimated at £5.35m, and is capped at a maximum of £6million. Completion of the Acquisition is currently expected to take place on 31 October 2016. The Photo Division consists of 191 photo centres, as well as 172 self-service kiosk sites located in Asda stores. These businesses will be managed by Photo-Me under a ten-year concession. As part of the Acquisition the employees of the Photo Division will transfer across to the Group. Besides those in-store locations, Photo-Me will also operate the Asda-branded online photo-processing offering for a minimum of 2.5 years. This transaction strategically expands Photo-Me's estate in attractive locations offering convenience and high footfall, and enhances its online photo-processing offering. Photo-Me believes that it can increase its market share in the attractive digital photo-printing and consumer photo-merchandise markets. In addition, Photo-Me believes that under its management, the performance of the business could be significantly enhanced in the medium term. The consideration for the Photo Division is £3.35m, subject to downward adjustment in certain circumstances. Photo-Me has also agreed to buy the inventory available at each photo centre at the date of Completion, as well as central consignment stock, estimated at £2m. The total consideration to be paid is currently estimated at £5.35m and is capped at a maximum of £6m. Under the arrangements, Photo-Me will also pay Asda periodic commission payments, negotiated on commercial terms, based on the turnover, as well as business rates and costs of utilities. Story provided by StockMarketWire.com

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