German Metro sells Kaufhof to Hudson's Bay for 2.8 bln eur

Mon Jun 15, 2015 1:24am EDT
 
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FRANKFURT, June 15 (Reuters) - Germany's Metro said on Monday it was selling its Galeria Kaufhof chain to Canadian department store operator Hudson's Bay Co for 2.825 billion euros ($3.17 billion).

The sale includes the Galeria Kaufhof department store business in Germany and the Galeria Inno department stores in Belgium, as well as a corresponding real estate portfolio, Metro said in a statement.

Reuters reported news of the deal on Sunday.

Metro expects the sale to have a positive effect of around 700 million euros on earnings before interest and tax (EBIT), it said, adding that the deal is due to close at the end of September. ($1 = 0.8925 euros) (Reporting by Jonathan Gould; Editing by Clarence Fernandez)