Europe's biggest food retailer, Carrefour, said it was expecting greater financial benefits from the acquisition of the Cora and Match retailers, despite higher costs than anticipated.
Carrefour said the upside would come from better performance in stores, as well as cost optimisation, despite higher than anticipated integration costs.
The group plans to put Cora hypermarkets under the Carrefour banner before the end of 2024, while Carrefour products will be available at both Cora and Match from September 2024.
Major Acquisition
"With the acquisition of the Cora and Match banners, Carrefour is carrying out its largest operation in France in more than twenty years and is consolidating its leadership in food distribution on its domestic market", Alexandre Bompard, chairman and chief executive of Carrefour, said in a statement.
"This operation consolidates Carrefour's position in the food distribution market in France, with 60 Cora hypermarkets and 115 Match supermarkets, mainly located in the Grand East and Northern regions of France, where Carrefour has historically had little presence."
Carrefour said it sees an additional contribution to earnings before interest, tax, depreciation and amortisation (EBITDA) of €130 million at an annualised rate by 2027, against €110 million originally.
The group said the integration costs, mainly distributed between 2024 and 2025, are now expected at €250 million, instead of €200 million initially anticipated.
Louis Delhaize
Close to a year ago, Carrefour said it would buy, in cash, the French stores of Cora and Match from rival Louis Delhaize.
The enterprise value of the operation was estimated at €1.05 billion, and included the purchase of 55 hypermarkets and 77 supermarkets. On 1 July, Carrefour announced that it had finalised the acquisition of the brands.
"This transaction once again demonstrates Carrefour's ability to implement its virtuous and disciplined external growth strategy, serving its customers, its employees, its stakeholders, and the creation of value for its shareholders," Bompard added.
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Additional reporting by ESM
