Carrefour has boosted its presence in the fast-growing proximity format in Taiwan, with the acquisition of Wellcome Taiwan from Dairy Farm.
The transaction will see Carrefour take over 224 stores in total, including 199 Wellcome outlets (with an average sales area of 420 square metres) and 25 Jasons stores (average 820 square metres), as well as a warehouse.
The enterprise value of the transaction is €97 million.
Last year, Wellcome Taiwan posted net sales of approximately €390 million.
'Greater Strength'
In a statement, Carrefour said that by combining these businesses, 'customers and team members will benefit from the group’s greater strength and scale. Thus, the quality, prices, and service offered to Taiwanese consumers could be improved.'
Carrefour currently operates 137 stores in Taiwan, including 69 proximity stores under the Market banner.
Last year, Carrefour posted net sales in Taiwan of €1.97 billion, as well as EBITDA of €209 million.
The retailer said that it plans to convert the Wellcome stores to the Market banner within 12 months after the closing of the transaction, as well as convert the Jasons stores to a Carrefour premium banner.
© 2020 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.
