Russia-based multi-format retail chain Lenta IPJSC has acquired the convenience store chain Monetka in a cash and debt takeover.

As part of the deal, the retail chain acquired a 99.999% stake in Monetka for an undisclosed sum through its subsidiary Lenta.

Monetka, which is owned by RM Group, operates a network of 2,120 stores, most of which have an average store size of 290m² and are located in the Urals and Western Siberia.

The retailer has more than 23,000 employees.

Monetka registered Rbs177.8bn ($1.82bn) in fiscal year 2022, increasing by 29% in absolute terms compared to the prior fiscal year.

In the first half of fiscal year 2023, the retailer saw its revenue grow by 16.8% and its like-for-like (LFL) sales rose by 8.7%.

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By GlobalData

According to Lenta, the acquired assets have a total selling space of 606,000m².

The deal also includes five distribution centres with a total area of 116,000m² and more than 560 trucks.

Following the acquisition, Monetka’s business will continue to operate as a standalone legal entity and its stores will operate under the same brand.

The acquisition aligns with Lenta’s long-term strategy and will strengthen its position in the Russian grocery retail market and the convenience store segment.

The company aims to deliver Rbs1tn in revenue in 2025.

Lenta Board of Directors chairman Alexey Mordashov said: “The acquisition of Monetka, a prominent Russian convenience chain, is a major strategic step towards Lenta’s leadership in one of the most rapidly growing segments of the Russian grocery retail. It underscores our commitment to actively engaging in the ongoing consolidation of the regional food retail market in Russia.

“This transaction gives us instant access to a network of over two thousand stores with an established customer base, skilled personnel and a recognised brand.

“It will provide a fresh impetus for the group’s growth, further solidifying our position in the regions and expanding our market share in the Russian food retail. The board of directors is confident that this deal will benefit our customers and enhance the company’s shareholder value.”