France-based mass-market retail group Casino has completed the sale of the first set of 61 stores in France to Groupement Les Mousquetaires.
The outlets comprise hypermarkets, supermarkets, Franprix grocery shops and convenience stores, representing 2022 sales of €563m ($592.76m) excluding value-added tax (VAT). It is based on an enterprise value of €209m, including service stations.
Casino said that the stores’ transfer to the Intermarché or Netto banners will be effective starting this month, subject to necessary conversion work.
As part of the agreement signed in May 2023, Casino provides Les Mousquetaires with a call option, which can be exercised for a second set of stores within three years. The outlets represent €510m in sales excluding VAT.
Late last month, Les Mousquetaires made an initial lump-sum payment of €140m to Casino in exchange for a 49% non-controlling interest in these outlets.
In addition to the stores, Les Mousquetaires and Casino have extended the duration of their current alliances, including Auxo Achats Alimentaires and Auxo Achats Non-Alimentaires, by two years until 2028.
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Casino operates a network of more than 12,000 stores across the globe, generating €33.6bn in net sales in 2022.
In June this year, the company announced that it needed at least €900m of equity contribution to carry out its restructuring plan.
In the following month, the company’s board decided to continue talks with a Czech billionaire Daniel Kretinsky-led consortium to strengthen equity capital.
Last month, Casino said that it had extended the deadline to enter into a lock-up agreement with its creditors until 3 October.