Global food retailer group Ahold Delhaize has entered an agreement to purchase Romanian grocery retailer Profi Rom Food from private equity company MidEuropa.
Ahold Delhaize will buy a 100% stake in Profi for an enterprise value of €1.3bn ($1.37bn).
Profi has a network of 1,654 stores. It recorded total sales of €2.5bn ($2.65bn) in the twelve months ending June 2023.
Ahold Delhaize expects the acquisition to strengthen the market position of Mega Image, its local brand in Romania.
The company operates 969 stores under the Mega Image brand, primarily in urban areas.
The integration of the Profi and Mega Image brands is expected to drive both sales growth and profitability in Romania.
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The deal is expected to complete in 2024 and will be 100% debt funded.
BofA Securities and Goldman Sachs provided financial advice to Ahold Delhaize for the transaction.
Ahold Delhaize Europe and Indonesia chief executive officer Wouter Kolk stated: “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 and 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 digitalisation, sourcing, extended local assortment, infrastructure and sustainability. I am excited for the journey ahead.”