Polish retail group Piotr i Paweł has secured financial investment from TFI Capital Partners, a Warsaw-based investment fund.
The investment agreement was finalised yesterday, 22 February, and enters into force immediately, according to Portal Spożywczy, a Polish trade publication.
The deal does not require the approval of UOKiK, the Polish office of Competition and Consumer Protection.
'Another Milestone'
Commenting on the investment, co-owner of the retail chain, Piotr Woś, said that obtaining support from TFI Capital Partners is "another milestone in the history of our development".
Woś added that "satisfying the needs of our customers, and ensuring the stability of our relations with business partners and financial institutions is our priority."
He noted that the business has enjoyed "excellent cooperation" with a number of financial institutions in recent months, including Bankiem Zachodnim WBK, ING Bankiem Śląskim and SGB-Bankiem.
Piotr i Paweł is also continuing the process of selecting a 'strategic investor', in line with a previously-adopted schedule, and alongside advisors from Bankiem Zachodnim WBK.
Stability
A representative from TFI Capital Partners added that the entry of the business into the ownership structure of Piotr i Paweł will help to "stabilise" the group's position, according to Portal Spożywczy.
"The investment in the Piotr i Paweł chain has a great growth potential for us due to the unique character of the Piotr i Paweł brand in the Polish market, a large group of loyal and satisfied customers, the family nature of the company and its nearly 30-year history, as well as development prospects," Adam Chełchowski, president of the management board at TFI Capital Partners commented.
Stronger Capabilities
Earlier this month, Robert Krzak, board member at Piotr i Paweł told Rynek Spożywczy magazine that he was eager for the business to improve its purchasing conditions to enable Piotr i Paweł to "compete more directly" with major players in the Polish retail market.
“Companies with around 1% market share have significantly worse purchasing conditions and need a larger scale of purchase, a larger scale of operations,” he explained.
Piotr i Paweł was founded in 1990, and is operated by brothers Piotr and Paweł Woś. The retailer operates 145 stores across Poland; one of the most competitive retail landscapes in Europe, with Biedronka, Carrefour, Tesco, Auchan, Kaufland, Aldi, Lidl and others all competing for their share of the consumer wallet.
© 2018 European Supermarket Magazine – your source for the latest retail news. Article by Stephen Wynne-Jones. Click subscribe to sign up to ESM: The European Supermarket Magazine.
