18 April 2005
GUS plc, the retail and business services group, today announces that Argos has agreed to buy 33 Index stores and the Index brand from Littlewoods Limited (“Littlewoods”). The purchase price is £44m payable in cash upon completion, which is expected to be during July 2005.Argos has agreed to purchase 33 of Index's 66 standalone stores from Littlewoods. It expects, subject to lease assignment in each case, to convert all of these 33 stores to the Argos fascia over a three-month period following completion. In the year to 30 April 2004, sales at these stores were approximately £75m. No merchandise stock will be acquired as part of the transaction.
Argos will acquire the Index brand, certain intellectual property rights and other assets within three months of the completion date.
Argos will not incur costs in respect of any closure of the remaining 33 standalone Index stores or the 93 concessions that Littlewoods will retain.
Commenting on the purchase, Terry Duddy, Chief Executive of Argos Retail Group, said:
“The purchase of these stores enables us to extend Argos' proven model of offering better choice, value and convenience to more customers in a cost effective and efficient way. We are pleased to welcome around 800 Index store employees to Argos.”
| GUS | ||
| Richard Ashton | Finance Director, Argos Retail Group | 020 7495 0070 |
| Fay Dodds | Director of Investor Relations, GUS | |
| Finsbury | ||
| Rupert Younger | 020 7251 3801 |
GUS announcements are available on its website, www.gusplc.com.