Ahold Delhaize has agreed a €1.3bn deal to acquire leading Romanian grocery retailer Profi Rom Food SRL (Profi) from private equity firm MidEuropa.
Profi operates 1,654 stores in the country, generating sales of €2.5bn during the year ending June 2023.
The acquisition will more than double the size of Ahold Delhaize’s existing Romanian business, which operates under the Mega Image brand and has 969 stores, predominantly in urban areas.
The company noted that Romania is an attractive market experiencing continued growth in consumer spending power, with the combination allowing Ahold Delhaize to better serve both urban and rural areas. It also expects to generate “significant” revenue growth and synergy savings from the transaction that can be passed on to local customers.
Frans Muller, Ahold Delhaize’s Chief Executive, said: “I am very excited to welcome Profi into the Ahold Delhaize family. We have followed the company’s trajectory for a while now and admire what the Profi team has been able to achieve.
“I strongly believe that Profi has an exciting growth pathway ahead, and look forward to partnering with the team to further solidify our presence in Central and Southern Europe.”
Wouter Kolk, CEO of Ahold Delhaize Europe & Indonesia, added: “Both Mega Image and Profi have been serving Romanian customers successfully in the past decades, which translated into increased loyalty and growth. By joining our family, the combination will benefit from our European best practices in the fields of digitalisation, sourcing, extended local assortment, infrastructure and sustainability. I am excited for the journey ahead.”
The deal is subject to approval from the regulatory authorities, with it expected to be completed next year.
NAM Implications:
- Suppliers’ priority has to be checking for any potential prices & terms disparities…
- Looks like you have a year max to make the necessary harmonising changes.
- Next, assess the potential of a 2 x national footprint when applied by Ahold in negotiations.
