South Africa's Steinhoff Group takes over Kika

South African furniture retailer Steinhoff International said on Wednesday it would acquire Austria's Kika-Leiner Group, as part of its strategy to bulk up across Europe, Reuters has reported.

Steinhoff, which owns several furniture retailers in Europe including France's Conforama and Britain's Harveys, said in a statement it had agreed to buy Kika-Leiner, subject to certain conditions.

It did not give a value for the proposed transaction or details of the conditions. It said the Austrian company had annual net sales of around 1.2 billion euros and a network of 73 shops, with 23 of those in central and eastern Europe.

Steinhoff said the deal would give it a presence in Austria and bolster its limited presence in central and eastern Europe.

Steinhoff is in the final stages of its restructuring drive aimed at creating three listed entities focused on manufacturing and selling furniture in emerging markets and in Europe.

Its extensive operations in Europe make it one of the continent's biggest home furnishing businesses, and it has said it plans to float a European unit.

Kika opened its first store in Serbia in Belgrade's neighborhood Bezanijska Kosa in November 2009. This department store spans 24,000 square meters with 11,000 sqm being retail space.