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Press release:
Kingfisher plc to Acquire Streets Online

31 October 2000

 

31 October 2000

Kingfisher plc To Acquire Streets Online

Kingfisher plc has today announced its intention to purchase an 85% majority share in Streets Online, the UK's leading on-line entertainment retailer, for £15.7 million, payable in cash or loan notes.

Streets Online will complement Kingfisher's MVC entertainment retail business which currently operates 87 stores throughout the UK.

Founded in 1996, Streets Online operates a group of transactional websites consisting primarily of Audiostreet (music), DVDstreet (DVD), Gamesstreet (games) and Alphabetstreet (books) together with related websites for content, including online magazine Streetwise and Xchange, a service for providing second hand or hard to find products from third parties.

Streets Online has recruited over 300,000 customers since its launch and is projected to have annual sales of around £10 million in 2000. It has also achieved the highest reach of any UK e-commerce web site for the last six months up to September 2000, according to NetValue.

Commenting on the acquisition, e-Kingfisher Chief Executive Ian Cheshire, said: "The acquisition of Streets Online with its well-developed e-commerce infrastructure is another example of Kingfisher's 'bricks and clicks' strategy to offer customers multi-channel access to its products. Streets Online will benefit greatly from its close links with MVC and the buying strength of Kingfisher".

Following the proposed Kingfisher demerger, Streets Online will become part of the new General Merchandise company. Martin Toogood, Chief Executive of General Merchandise, said: "The UK's music, video/DVD and games entertainment market is expected to grow by 8% each year to around £5.7 billion in 2004. Around 17% of this market will come from e-commerce. The purchase of Streets Online will give General Merchandise a substantial share of the online market and will reinforce our position as one of the UK's leading entertainment retailers".

- ends -

NOTES TO EDITORS

MVC Entertainment Limited (MVC)

  • Specialist entertainment retailer MVC opened its first store in 1991 and now operates 87 stores throughout the UK
  • MVC has over five million membership card holders
  • MVC has around 5% of the CD, video and DVD markets in the UK

For further information :

Media Enquiries

Jonathan Miller, Head of Public Relations
+44(0) 20 7725 5713

Gail Lavielle, Director of Corporate Communications
+33(0) 1 43 18 52 68

Broker and Institutional Enquiries

Andrew Mills, Acting Director of Investor Relations
+44 (0) 20 7725 5776

Graham Fairbank, Head of Coporate Communications
+33 (0) 1 43 18 52 26

Kingfisher plc

+44 (0) 20 7724 7749

 

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