Delhaize expands Mega Image in Romania
The Belgian international food retailer, Delhaize Group, has entered into an agreement to acquire La Fourmi supermarkets in Bucharest, through its fully-owned subsidiary Mega Image. This deal gives Mega Image the opportunity to strengthen its leading position in Romania.
La Fourmi was the first supermarket chain to open in Bucharest in 1992. Currently, 90% of La Fourmi is owned by Global Finance, a Greek private equity fund, and the remaining 10% belongs to private investors. The purchase price for 100% ownership of La Fourmi is €18.6 million. For 2007, the estimated revenue of the 14 acquired stores amount to approximately €30 million.
In 2004, Mega Image, which consists of 22 stores (19 in Bucharest, 2 in Constanta and 1 in Ploiesti) became fully-owned by Delhaize Group. The 14 stores, which have a size of 350 to 500 m2, will be converted to the Mega Image banner.
John Kyritsis, General Manager of Mega Image, commented: “This transaction fits perfectly into Mega Image’s strategy of growing via well-located stores in urban areas. The 14 La Fourmi stores will strengthen our store network. We also expect sizable sales opportunities and buying synergies from this acquisition.”
The acquisition of La Fourmi is subject to customary conditions, including the approval by the Romanian antitrust authorities, but the transaction is expected to close in the second quarter of 2008.
Related link:
Mega Image [Romanian]
