Maisons du Monde : accelerates its international expansion and gains a foothold in the US with the acquisition of Modani

PRESS RELEASE

MAISONS DU MONDE ACCELERATES ITS INTERNATIONAL EXPANSION

AND GAINS A FOOTHOLD IN THE UNITED STATES

WITH THE ACQUISITION OF MODANI

Nantes, 3 May 2018

Maisons du Monde (Euronext Paris: MDM, ISIN Code: FR0013153541), a European leader in affordable and inspirational decoration and furniture homeware, is accelerating its international expansion with the acquisition of a 70% stake in Modani, a furniture chain present across the US through its stores and e-commerce business, with an option to acquire the remaining outstanding shares.

With this acquisition, Maisons du Monde continues its growth story and complements its strong European presence with a position in one of the world's biggest markets. It is thus making a major advance in its goal of growing its international footprint. Maisons du Monde is gaining a foothold in the United States in an agile and controlled manner, capitalizing on the knowledge of the US market of Modani's founders.

In 2017, Modani reported sales of $41.4 million and EBITDA of $4.9 million. Founded in 2007 and based in Miami, Modani has a network of 10 stores in major US cities and markets its offering through its website and marketplaces.

Modani's economic model is very similar to that of Maisons du Monde:

• An aspirational brand based on a furniture collection designed in-house, multiple categories and styles, regularly renewed and at affordable prices;
• An efficient value chain characterized by the same "design to cost" concept and a logistics platform combining proximity and product availability.

The acquisition of Modani by Maisons du Monde will accelerate the development of the company, which will continue to operate under its own brand and with the same leadership team.

The transaction will allow both companies to benefit from a number of commercial and development synergies:

• For Modani, acceleration of store openings and e-commerce activity, as well as expansion of the product offering, particularly in the decoration category;
• For Maisons du Monde, development of its knowledge of the US market and opportunity to test the Maisons du Monde concept in the short-term with a view to launching its own stores in the future.

The acquisition will be financed entirely in cash, without recourse to additional debt.

Gilles Petit, CEO of Maisons du Monde, said: "The acquisition of Modani marks a milestone in our international expansion and illustrates our agile and controlled approach to broadening our footprint. With this acquisition, we can support Modani in its development by providing additional expertise, while benefiting from the excellent knowledge of the US market of its leaders to create a launch pad for Maisons du Monde in the country. Modani has many commonalities and great complementarities with Maisons du Monde that we can develop further. We look forward to working alongside its founders to continue the growth of both companies."

Nathan Cohen, Yonel Fallous and Steven Althea, co-founders and Managing Partners of Modani, said: "We are delighted to have the support of Maisons du Monde to write a new chapter in the Modani story. The company was launched with the ambition to offer quality modern furniture at affordable prices. The community of views and business models with Maisons du Monde makes it a natural partner to accelerate our development by opening new stores, optimizing our online presence, expanding our offering and exploring new growth opportunities."

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About Maisons du Monde

Maisons du Monde is a creator of inspirational lifestyle universes in the homeware industry, offering distinctive and affordable decoration and furniture collections that showcase multiple styles. The Group develops its business through an integrated and complementary omnichannel approach, leveraging its international network of stores, websites and catalogues. The Group was founded in France in 1996 and has profitably expanded across Europe since 2003. The Group posted sales of €1,011 million and EBITDA of €139 million for the year ended 31 December 2017. In 2017, the Group operated 313 stores in seven countries including France, Italy, Spain, Belgium, Germany, Switzerland, and Luxembourg, and derived over 38% of its sales from outside France. The Group has also built a successful complementary and comprehensive online shopping website, sales from which grew 35% per year on average between 2010 and 2017. The website is available in eleven countries: the seven countries where the Group operates stores plus Austria, the Netherlands, Portugal and the United Kingdom. In 2017, online sales represented 21% of the Group's sales.

www.corporate.maisonsdumonde.com

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About Modani

Modani is an aspirational lifestyle brand at the confluence of design and value, offering high-quality proprietary modern, contemporary and mid-century furniture at affordable price points. Founded in 2007 and based in Miami, Modani has a nationwide presence through 10 showrooms in New York (2 showrooms), Chicago, Dallas, Atlanta, Miami, Fort Lauderdale, Los Angeles and San Francisco, and also sells through its modani.com website and marketplaces. Modani reported sales of $41.4 million and EBITDA of $4.9 million in 2017, and has 101 employees. The company has grown rapidly and posted a compound annual growth rate of 23% over the past seven years.

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