Texas-based GameStop, the world’s largest video game retailer, has struck a $700 million (€480 million) deal with private equity firm L Capital to buy French video game seller Micromania.
The deal, which is expected to close in November, is subject to approval by the European Commission. GameStop will pay for the company with cash and the assumption of Micromania’s debt.
GameStop said in a statement it will fund the acquisition with cash, a draw on its revolving credit facility and a $150 million term loan from Bank of America. GameStop will operate 5,889 stores in the US, Canada, Australia, New Zealand and with the Micromania acquisition, the company has 1,077 stores in throughout Europe, including in France, Italy, Germany, Austria, Switzerland and Spain.
L Capital bought a 35 percent stake in Micromania in 2000 for an undisclosed amount. L Capital is a private equity firm sponsored by the luxury goods conglomerate LVMH. The firm has about €600 million under management and was established in 2001.