Carrefour has agreed to acquire the Cora and Match assets in France from the Louis Delhaize group.
The Cora and Match banners operate 60 hypermarkets and 115 supermarkets respectively and employ c.24,000 people in France.
The transaction includes the acquisition of the real estate of 55 hypermarkets and 77 supermarkets.
The transaction, which is expected to close in the summer of 2024, values the acquired assets on the basis of an enterprise value of €1.05bn; it will be accretive in terms of adjusted EPS from year one.
”The integration of the Cora and Match stores offers significant potential for synergies, estimated at €110m in EBITDA on an annual basis 3 years after the effective completion of the transaction. The associated integration costs, spread over 2 years, are estimated at €200 million (investments and operating expenses),” the company said in a press release.
In parallel, Carmila, in which Carrefour has a 36% stake, has reached an agreement with the Louis Delhaize group to acquire its 93% holding in Galimmo, which owns 52 shopping galleries adjacent to Cora stores.
Alexandre Bompard, Chairman and Chief Executive Officer, declared :With the acquisition of the Cora and Match banners, Carrefour is announcing its first major acquisition in France in more than twenty years and consolidates its leading position in food retail in its domestic market. This agreed transaction will allow Carrefour to continue the adventure started in France by the Bouriez family and the Louis Delhaize group, with which our Group shares a common culture, history and values. I want to pay tribute to them, as well as to the Cora and Match teams, whose expertise, commitment and entrepreneurial culture will be an asset for our Group. This transaction also demonstrates our ability to pursue our external growth strategy through targeted acquisitions, providing market share and synergies, thanks to the transformation initiated 6 years ago and the strength of our balance sheet. The Carrefour Group will be able to provide the acquired stores with a powerful commercial and operational model, very complementary to Cora and Match’s know-how, thanks to its own brand, digital acceleration and its purpose, the food transition for all.”
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