According to Arnaud Lagardère: This agreement stems from an alliance between two major players in the cultural and communications domains which share identical values: the same brand culture and the same entrepreneurial spirit.
The three key points of this initial agreement are:
The acquisition by Lagardère Media via HDS of the 16 Virgin Megastores in France,
The acquisition of an exclusive licence by Lagardère Media via HDS to use the Virgin Megastore brand in public transport areas,
The obtention by Lagardère Media via HDS of an exclusive licence for the use of the Virgin brand in the distribution of cultural products in certain European countries.
The purchase of Virgin Stores by Lagardère Media gives HDS 37 stores generating total annual sales of 365 million (nearly FRF 2.4 billion), to be further strengthened by the opening of new stores over the next two years, along with additional jobs. The arrival of Virgin Stores will therefore drive growth and profitability in this major division of Lagardère Media.
According to Arnaud Lagardère, Our strategy, based first and foremost on content, is reliant on the balanced development of our four divisions (Press/Magazines, Publishing, Audiovisual/New media and Distribution/Retail). Due to its countercyclical positioning, as well as its cash generation capability, HDS is a key factor behind Lagardère Media’s growth. In this context, the acquisition of Virgin Stores is an essential element in our media strategy. Moreover, this agreement strengthens HDS in its retail travel business.
For Jean-Louis Nachury, Chairman and CEO of Hachette Distribution Services
Our agreement with Virgin provides us with a tremendous opportunity to step up the growth of our strategic businesses in France and abroad.
