— With the acquisition, Grupo Elektra adds more than 300 strategically-located points of sale,
reaching close to 6,800, to further strengthen the company's distribution network —
— Grupo Elektra will integrate the Blockbuster Mexico network to its
current platform of financial services and products—
MEXICO CITY, Jan. 14, 2014 (GLOBE NEWSWIRE) -- Grupo Elektra, S.A.B. de C.V. (BMV:ELEKTRA) (Latibex:XEKT), the financial and specialty retailer company leader in Latin America and largest provider of non-bank short term loans in the U.S. - and a company of Grupo Salinas, a group of dynamic and technologically advanced companies founded by Ricardo Salinas (www.ricardosalinas.com) - announced today that it acquired 100% of the shares of Blockbuster de México, S.A. de C.V from Blockbuster L.L.C., a wholly-owned subsidiary of satellite pay-TV provider DISH Network (Nasdaq:DISH) based in Englewood, Colorado, USA.
With the acquisition, Grupo Elektra adds more than 300 points of sale to its distribution network, which currently includes 6,460 outlets, and adds 110,000 m2, representing a 7% increase of its exhibition area. The Blockbuster stores cover 108 cities in Mexico, and are mainly located in the B and C demographic areas, which will expand the customer base of Grupo Elektra.
The company plans to offer a variety of products, in addition to strengthening its current financial services platform, and promote the transformation of the digital entertainment distribution network.
Edward J. Argüelles, CEO of Blockbuster Mexico, will continue to lead operations; Mr. Argüelles has extensive experience in the retail sector.
Grupo Elektra extends its geographical distribution and service to additional markets, further strengthening the financial and commercial business, and expands the prospects for growth and profitability.
Company Profile:
Grupo Elektra (www.grupoelektra.com.mx) is Latin America's leading financial services company and specialty retailer and the largest non-bank provider of cash advance services in the United States. The Group operates over 6,000 points of sale in Mexico, USA, Brazil, Guatemala, Honduras, Peru, Panama, and El Salvador.
Grupo Elektra is a Grupo Salinas company (www.gruposalinas.com), a group of dynamic, fast-growing, and technologically advanced companies focused on creating shareholder value, contributing to build the middle class of the countries in which they operate and improving society through excellence. Created by Mexican entrepreneur Ricardo B. Salinas (www.ricardosalinas.com), Grupo Salinas operates as a management development and decision forum for the top leaders of member companies. The companies include Azteca (www.irtvazteca.com), Azteca America (www.aztecaamerica.com), Grupo Elektra (www.grupoelektra.com.mx), Banco Azteca (www.bancoazteca.com.mx), Advance America (www.advanceamerica.net), Afore Azteca (www.aforeazteca.com.mx), Seguros Azteca (www.segurosazteca.com.mx) and Grupo Iusacell (www.iusacell.com.mx). Each of the Grupo Salinas companies operates independently, with its own management, board of directors and shareholders. Grupo Salinas has no equity holdings. However, the member companies share a common vision, values and strategies for achieving rapid growth, superior results and world-class performance.
Except from historical information, the matters discussed in this press release are forward-looking concepts that involve risks and uncertainties. It is possible that actual results may differ materially from those projected. Other risks that may affect Grupo Elektra are identified in documents sent to the securities authorities.