Polish retailer and wholesaler Eurocash has announced that it has signed the final agreement on its acquisition of Mila Supermarkets from Cyprus-based Domelius Limited.
The completed deal will now see some 187 supermarkets, located primarily in central Poland, transferred to Eurocash’s ownership, following the granting of Polish competition authority (UOKiK) approval last week.
The banner generated about PLN 1.48 billion (€340 million) in total sales in 2017, and, following the acquisition, Eurocash said that it “aims [for] a strong strategic partner with the know-how and resources necessary for further development”.
The transaction to acquire the Mila chain was valued at PLN 350 million (€81 million), with the figure excluding select property assets, which were not acquired by Eurocash.
The integration of the Mila chain with Eurocash Group may last between two and three years, the company added.
A decision on store rebranding will be taken at the end of the integration process.
Smooth Integration
“Now that the transaction is finalised, we can begin a smooth integration of our businesses,” said Jacek Owczarek, CFO and a member of Eurocash Group’s management board.
“It will be a period of intensive exchange and implementation of best practices of both chains, i.e. Mila and Delikatesy Centrum. The acquisition of Mila is very valuable to us, as it will lead to the transfer of know-how and experience to our franchisees and partners,” Owczarek added.
He praised the enhanced logistics structure that the new alliance creates, as well as the increased purchasing power of the expanded Eurocash group.
“One can say that independent retailers are starting to reacquire the market that has so far been dominated by large-format chains,” Owczarek noted.
Elsewhere, Artur Góralczyk, president of the management board of Mila SA, said, “Eurocash’s stability and experience are some of the key assets that the Mila chain is gaining as of the day of transaction closing.
“We expect the exchange of know-how to translate into an improved competitive position of our supermarkets,” Góralczyk added.
© 2018 European Supermarket Magazine – your source for the latest retail news. Article by Stephen Wynne-Jones. Click subscribe to sign up to ESM: European Supermarket Magazine.
