Edeka outlets sold to Rewe

German retailer Rewe is set to acquire 133 Marktauf DIY stores, according to the Handelsblatt daily. Marktauf is a subsidiary of Edeka. The financial details of the transaction were not disclosed, but Edeka will reportedly get €120 to €150 million from the deal. The transaction is subject to regulatory approval.

With this purchase, Rewe will see its DIY store network increase by half, and become Germany’s third-largest DIY stores operator. The purchased stores will fit in with the concept of Rewe's DIY Toom Baumarkt chain. After the deal, Rewe will operate over 385 DIY stores, which generate over €2 billion in revenue. The acquired stores employ around 5,200 staff, and registered E760m in net revenue in 2006.

In recent years, Toom Baumarkt has acquired smaller chains such as Klee, Goetzen and Stinnes. Rewe plans to streamline the acquired stores until 2010, and then start turning profits. The stores will be rebranded to the Toom or Zack banner, and some of the, will be managed on a franchise basis.

Marktfauf originally operated a total of 150 stores, five of which were shut down in February, and 17 more are to be closed by June 2007.

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