Ahold Delhaize announced that it has agreed to acquire 100% of Romanian grocery retailer Profi Rom Food from MidEuropa subject to approval from the regulatory authorities.
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Profi is a leading traditional grocery retailer in Romania, operating 1,654 stores in the country. It is known for its strong assortment and value for customers. In the twelve months ending June 2023, the company generated €2.5 billion in sales.
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 combination will complement and expand Ahold Delhaize’s existing Romanian footprint to better serve both urban and rural areas.
The strong format fit and complementary customer propositions between the Profi and Mega Image brands, will allow them to better serve the Romanian consumer, driving both sales growth and profitability.
Ahold Delhaize will pay an Enterprise Value of approximately €1.3 billion, corresponding to lease-adjusted Enterprise Value of €1.8 billion (post IFRS 16).
The acquisition consideration will be 100% debt funded.
Frans Muller, Ahold Delhaize’s Chief Executive Officer, 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, Chief Executive Officer of Ahold Delhaize Europe & Indonesia, said: “I’d like to extend a very warm welcome to the full Profi team, we are very pleased to include them in our family.
"This step forwards fortifies our position in Central and Southern Europe, it also underscores our trust in the potential of the region.
"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 digitalization, sourcing, extended local assortment, infrastructure and sustainability. I am excited for the journey ahead.” ■