Carrefour has announced that it has entered into agreement with the Louis Delhaize group to acquire the Cora and Match banners in France.
The transaction, which is expected to close in the summer of 2024, values the acquired assets at an enterprise value of €1.05 billion, Carrefour said in a statement.
As part of the deal, Carrefour will acquire the real estate of 55 hypermarkets and 77 supermarkets operating under the Cora and Match banners.
Cora and Match together generated net sales of €5.2 billion in 2022 (€4.3 billion excluding petrol), and EBITDA of €189 million.
'First Major Acquisition In 20 Years'
"With the acquisition of the Cora and Match banners, Carrefour is announcing its first major acquisition in France in more than twenty years and consolidates its leading position in food retail in its domestic market," commented Carrefour chief executive Alexandre Bompard.
"This transaction also demonstrates our ability to pursue our external growth strategy through targeted acquisitions, providing market share and synergies, thanks to the transformation initiated six years ago and the strength of our balance sheet.
"The Carrefour Group will be able to provide the acquired stores with a powerful commercial and operational model, very complementary to Cora and Match’s know-how, thanks to its own brand, digital acceleration and its purpose, the food transition for all."
Romania Acquisition
In May, Carrefour acquired Louis Delhaize's Romanian operations, which included 10 hypermarkets and eight 'Cora Urban' stores.
The Cora and Match banners operate 60 hypermarkets and 115 supermarkets respectively and employ approximately 24,000 people in France.
The latest announcement comes just days after Carrefour announced a partnership with Nexity to enhance its real estate portfolio in France.
Synergy Opportunities
Carrefour said that the acquisition offers 'significant potential for synergies', and expands the group's footprint in eastern and northern France, where its footprint is limited.
"This agreed transaction will allow Carrefour to continue the adventure started in France by the Bouriez family and the Louis Delhaize group, with which our group shares a common culture, history and values," Bompard added.
Carrefour recently extended Alexandre Bompard's tenure as Carrefour chief executive for another three years.
More Hypermarkets?
According to retail analyst Olivier Dauvers, the retailer may still face challenges in convincing its shareholders of the benefits of the move.
"For years, financial analysts have doubted large hypermarkets and even more so in France," he wrote on his website. "Cora brings 60 of them, with an average size of 9,600 square metres, including some large vessels.
"Clearly, it is therefore necessary to convince those who no longer really believed in it that to put in a billion to increase the 'hyper-dependence' of Carrefour in France (from 49% to 52% of sales) is good business."
In June, Carrefour launched a major price reduction initiative – on 400 branded products and 100 private labels – amid the rising cost of living in France.
