Best Buy to Sell its Five Star Business in China
December 04 2014 - 2:30AM
Business Wire
Best Buy Co., Inc. (NYSE:BBY) today announced that it has
entered into a definitive agreement for the sale of its Five Star
business to the Jiayuan Group, a prominent China-based real estate
firm led by Chairman Yuxing Shen. This sale does not affect Best
Buy’s private label operations in China.
“Over the last two years we have worked to improve our business
in China and are proud of the progress we have made there,” said
Hubert Joly, president and chief executive officer of Best Buy. “We
were recently approached by Jiayuan Group, a respected Chinese
investment group, which offered to acquire the business with plans
to further expand it. The Jiayuan Group has agreed to work with
Five Star Chief Operating Officer Yiqing Pan, who will become chief
executive officer of Five Star. Mr. Pan has been with the business
for many years and has a deep respect for Five Star employees, as
well as a vested interest in continuing to work with them to build
a stronger presence in China,” Joly said.
“The sale of Five Star does not suggest any similar action in
Canada or Mexico. Instead, it allows us to focus even more on our
North American business. We will also continue to invest in and
grow our China-based private label operations, with brand names
that include Dynex, Insignia, Modal, Platinum and Rocketfish,” Joly
added.
Best Buy entered the Chinese retail market by purchasing a
majority interest in Jiangsu Five Star in 2006 and now operates 184
stores in China, all under the Five Star brand. The transaction,
which is subject to regulatory approval, is expected to close in
the first quarter of fiscal 2016. The sale of the Five Star
business is not expected to have a material impact on the results
of operations, financial position or cash flow of Best Buy.
Forward-Looking and Cautionary Statements:
This news release contains forward-looking statements within the
meaning of the Private Securities Litigation Reform Act of 1995 as
contained in Section 27A of the Securities Act of 1933 and Section
21E of the Securities Exchange Act of 1934 that reflect
management’s current views and estimates regarding future market
conditions, company performance and financial results, business
prospects, new strategies, the competitive environment and other
events. You can identify these statements by the fact that they use
words such as “anticipate,” “believe,” ”assume,” “estimate,”
“expect,” “intend,” “project,” “guidance,” “plan,” “outlook,” and
other words and terms of similar meaning. These statements involve
a number of risks and uncertainties that could cause actual results
to differ materially from the potential results discussed in the
forward-looking statements. Factors that could cause such
differences include: uncertainties regarding the expected benefits
from and effects of the transaction; the parties’ ability to
satisfy the other conditions and terms of the transaction, and to
execute the transaction in the estimated time frame, if at all; and
other risks and uncertainties, including those detailed from time
to time in the registrant’s periodic reports (whether under the
caption Risk Factors or Forward-Looking Statements or elsewhere).
The registrant assumes no obligation to revise or update any
forward-looking statement, except as otherwise required by law.
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Best Buy Co., Inc.Investor
Contact:Mollie O'Brien,
612-291-7735Mollie.obrien@bestbuy.comorMedia Contact:Amy von Walter,
612-437-5956Amy.vonwalter@bestbuy.com
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