Kingfisher Sells Italian Business Castorama

Kingfisher has announced the sales of its underperforming Italian business for £440m to privately-owned French home improvement company Groupe Adeo S.A.

Kingfisher
plc is Europe's leading home improvement retail group and the third
largest in the world, with nearly 850 stores in nine countries in
Europe and Asia. Its main retail brands are B&Q, Castorama, Brico
Dépôt and Screwfix. Kingfisher also has a 21% interest
in, and strategic alliance with Hornbach, Germany's leading large
format DIY retailer. Company employes 85,000 people and nearly six
million costumers visit its stores every week.

Commenting on the sale Kingfisher's CEO
said, "We have built a successful and profitable business in
Italy which now needs more capital to continue its development. We
believe we can achieve higher incremental returns on capital
elsewhere in Europe and strengthen our balance sheet by reducing our
net debt”.
Castorama opened its first store in Italy in 1988
and now has 31 stores and employs over 2,200 people. In the year to 2
February 2008, the business recorded a retail profit of £29m
(2006/07: £31m) and sales of £314m (2006/07: £312m).
The sale
is conditional upon European Community Merger Regulation clearance
and is expected to be completed during the fourth quarter of 2008.
The proceeds of the sale will be used to reduce Kingfisher's net
debt.