GOKONGWEI-led retailer Robinsons Retail Holdings Inc. (RRHI) has signed a deal to acquire a 90 percent stake in the company that operates the 24-store consumer electronics and appliance retailing chain Saver’s Appliance Depot.
The deal is seen to strengthen and expand RRHI’s footprint in the consumer electronics and appliance business, particularly in Central Luzon and Cagayan Valley.
In a disclosure to the Philippine Stock Exchange late Tuesday, RRHI said it had signed a deal – through its wholly-owned subsidiary Robinsons Inc. – to buy into Savers Electronic World Inc. which owns and operates the Saver’s Appliance Depot.
Saver’s – one of the top 10 consumer electronics and appliance players in the country – has a gross selling area of 25,900 square meters in its 24 stores, all of which are located in Luzon. It has three stores in Metro Manila, 13 in Central Luzon and eight in Cagayan Valley.
“We are excited to partner with Saver’s Appliance Depot in growing the consumer electronics and appliance business of the group. As the economy expands, discretionary spending is seen to surge ahead and this format should be a strong beneficiary. Also, the increasing scale of the group is expected to strengthen our market position in the industry,” RRHI president and chief operating officer Robina Gokongwei-Pe said.
After this buy-in deal, Saver’s will continue to be managed by Jaime Uy, the managing director of the retailing firm.
“We are happy to become part of the Robinsons Retail family. The group has proven track record in growing and retaining the equity value of the companies or businesses that they acquired. We have strong presence in Northern Luzon which should add to the group’s growing presence in this region,” Uy said.
Saver’s opened its first appliance store in 1986. It was cited as the 2014 “Best Regional Retail Player” by the Philippine Retailers Association.
The price tag for this deal was not disclosed but RRHI said this constituted less than 10 percent of its stockholders equity as of end-December 2014.