Best Buy to Sell its Stake in Europe

May 06, 2013 6:15 PM  By

best-buyBest Buy has entered into an agreement to sell 50% of its interest in Best Buy Europe, according to a statement issued by the electronics retailer, back to Carphone Warehouse.

Best Buy bought 50% of Carphone Warehouse’s retail operations for $2.1 billion in 2008, according to the statement, and will now sell it back for $775 million.

“This transaction allows us to 1) simplify our business; 2) substantially improve our Return on Invested Capital, one of the five pillars of our Renew Blue transformation; and 3) strengthen our balance sheet,” Best Buy president and chief executive Hubert Joly said in the statement.

The transaction is expected to close by June, according to the Best Buy.

“Each international market is different and the sale of our European operations should not suggest any similar action in our other international businesses,” said Joly in the statement.