Late on Friday afternoon, after market close, discounter B&M European Value Retail (BME) announced the €91.2m (�80.5m) acquisition of Babou - a French chain of 95 discount stores. For the year ended 31 January 2018 the Babou Stores Group delivered revenues of €347.1m, cash profits of €24.7m and pre-tax profits of €0.1m. The deal was financed via cash, via an additional loan facility, is expected to be immediately earnings enhancing and has already completed. While analysts noted the “ambition” of the deal, brokerage Liberum has warned that “there is likely to be much work required to improve Babou's profitability and competition may well mean the group does not have it all its own way”.
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