R. Richard Fontaine, GameStop’s Executive Chairman, said, “As we have accelerated our growth in Europe over the years, we have kept a close eye on the European retailers whose passion for the business is reflected in the quality of their stores and evident knowledge of their staff. Micromania has been that type of retailer.

There you go, European retailers. If you try really hard to be the best at what you do, maybe one day GameStop will absorb you into their fleshy folds as well!

GameStop Acquires Micromania, France’s Leading Video Game Retailer from Private Equity Fund L Capital
Transaction Includes 332 Locations Throughout France

Increases GameStop’s European Presence to 1,077 Stores

GRAPEVINE, Texas—(BUSINESS WIRE)—GameStop (NYSE: GME), the world’s largest video game retailer, today announced that it has reached a definitive agreement to acquire Micromania, France’s leading video game retailer with 332 locations throughout the country, from private equity fund L Capital, its controlling shareholder.

GameStop, which currently has no stores in France, will operate 5,889 locations worldwide in the United States, Canada, Australia, New Zealand and, with the Micromania acquisition, the European store count will top 1,077 stores located throughout France, Italy, Germany, Austria, Switzerland, Sweden, Norway, Denmark, Finland, Ireland, Spain and Portugal.

The transaction, for approximately US$700 million (€480 million) in cash, including the assumption of debt, is subject to clearance by the European Commission, and is expected to close in November of 2008. Under the terms of the agreement, GameStop will purchase virtually all of the outstanding shares of the company. GameStop intends to fund the transaction through cash on hand, a draw on its existing revolving credit facility, and a $150 million committed term loan from Bank of America.

R. Richard Fontaine, GameStop’s Executive Chairman, said, “As we have accelerated our growth in Europe over the years, we have kept a close eye on the European retailers whose passion for the business is reflected in the quality of their stores and evident knowledge of their staff. Micromania has been that type of retailer.

When the opportunity arose to purchase Micromania, and after meeting the executives who lead the company, we became convinced that expanding into Europe’s second largest video game market with Micromania’s management team and GameStop’s diverse experience was a great combination for profitable growth.”

Daniel A. DeMatteo, GameStop’s Chief Executive Officer, indicated that, “The transaction is a reflection of our belief that the European video game market is growing and will be an important part of GameStop’s worldwide growth.

Historically, our most productive use of capital has, by far, been the addition of new stores whether opened organically or acquired. With the addition of Micromania, we have begun deployment of capital that we believe will help us achieve EPS growth of 25% or more in fiscal 2009, and set GameStop up for continued growth in the years to come. We expect this acquisition to be accretive to our fully diluted EPS in both the fourth quarter of fiscal 2008 and fiscal 2009.”

Pierre Cuilleret, who will remain Micromania’s President Directeur Général, said, “Micromania is a terrific brand. I am particularly pleased that the GameStop management team recognized the impassioned quality and importance of our sales advisors and senior managers. With GameStop as a partner, and with their history of seeking out new growth opportunities, I am very enthusiastic about our potential to expand the brand that has been built for over 25 years in France”.

Philippe Franchet, Senior Partner of L Capital, said, “Our strategy, engaged in 2001, to build the leading video games retailer in France under the management of a top quality team has paid out. It is this strategic position and the quality of the management team, under the leadership of Pierre Cuilleret, that the world leader GameStop has acquired.”

Citi acted as financial advisor to GameStop, and Lazard Frères acted as financial advisors to Micromania’s shareholders. Bryan Cave LLP served as legal advisor to GameStop and Ayache, Salama & Associés served as legal advisor to Micromania’s shareholders.

The industry currently operates a self-regulated ratings system for video and computer games. However, retailers in most EU countries are not legally obliged to restrict the sale of adult-classified products. The bloc's 27 member states also differ widely on how they judge unacceptable material.

Germany is thought to be one of the countries that takes advantage of the new penalties, putting the initiative high on their list after a shooting incident concerning an 18 year-old gamer and 11 students at his school. Kim Phu

EU Ministers Discuss Stricter Rules on Sale of 'Killer Games' [Earth Times]

(D)espite his near-exclusive emphasis on used games, Dionne said he still amounts to a small fish in Polk, where even rental chains like Blockbuster and Movie Gallery deal in secondhand sales.

"For me to be here after three years, I think that's a pretty tremendous feat," he said.

Big unhappy face on this one. I hate seeing the local shops struggling to stay in business when the big chains start moving into the neighborhood. Usually the smaller shops are friendly and don't have weird kids in them after school breaks out. I hate that. They always smell like sweaty fries. Kim Phu

Used Video Games Keep Some Retailers Afloat [The Ledger]

From the Euroweenie department comes this news: UK retailer Curry's has refused to stock Bully. Why? The usual jackassery:

t has been accused by MPs and charities of glamorising bullying in schools with violent and intimidating scenes.

Canis Canem Edit, Latin for 'Dog Eat Dog', invites players to adopt the persona of Jimmy Hopkins.

He is a teenage hoodlum who has been expelled from every school in his area.

Jimmy is made to attend the ultra-strict Bullworth Academy, a reform school, where he falls foul of school gangs, prefects and corrupt teachers.

Points are awarded for beating up other pupils, catapulting eggs, throwing stink bombs, setting off fire alarms and head-butting teachers.

There are points for humiliating other students — such as making them punch themselves or wiping spit on their faces.

Wow, that imaginary game they're talking about there sounds pretty fun. Too bad it doesn't actually describe Bully.

Kotakuite David B. writes: "At Curry's, Grand Theft Auto, Scarface, Metal Gear Solid and other violent games are acceptable. But wedgies are not." Florian Eckhardt

Bully is banned by Currys [The Sun]

What can you, Joe or Jane Gamer, expect from the PS3 launch? Our guess: a Best Buy show floor slick with congealing human gore and still quivering gibs, a morass of humanity gnashing and wailing near the pyramid of PS3 boxes in the middle like a Hieronymous Bosch nightmare. Expect machetes and eyeball gougings; skulls cracked open and gamers feasting on the goo inside to absorb the strength of their enemy. Shortages are going to be fierce... you'll need any edge you can get.

Naturally, the nation's retailers view this prospect with trepidation. Games First has a nice look up at what the nation's retailers are doing to brace themselves for the orgy of violence to be sparked by the PS3 launch, largely drawing from the lessons of past launches. How bleak is it going to be?

An internal Gamestop email expressed concern over how many PS3s their chain (which is the largest videogame retailer and includes Ebgames as well) would have available. A local store that received between 50 and 100 Xbox 360s at launch is expecting to get no more than 20 PS3s.

We've said it before: you're not going to get a PS3 at launch. Luckily, who wants one? Florian Eckhardt

Retailers Brace for the PS3 [Games First]

GamersReports has a nugget up about the Miami PlayStation Conference at the end of February. The website for the event, which is expected to be a showing of Sony's PS3, has a bunch of music playing in the background so if you're at work, can the sound. We're not trying to get you in trouble here at Kotaku.

Sony Opens Official Playstation 3 Conference Website [GamersReports]