The European Bank for Reconstruction and Development (EBRD), CEECAT Capital, and Morphosis Capital Fund II have become the new majority shareholders of Romanian discount retailer La Cocoș.
The EBRD is providing €10 million in equity financing, while private equity fund managers CEECAT Capital and Morphosis Capital will provide additional funding.
The strategic partnership will support La Cocoș's growth and expansion plans, enhancing its competitiveness and market presence.
Morphosis Capital will contribute its strong local presence and track record in developing Romanian businesses. CEECAT Capital brings regional experience in retail expansion, proven by the success of Gomex in Serbia.
EBRD contributes its extensive experience in supporting the development of the food retail sector in several Central and Eastern European countries.
'Financial Resources And Expertise'
Iulian Nica, founder and CEO of La Cocoș, said,"This transaction provides us with the financial resources and expertise necessary to rapidly expand our network by a double-digit number of locations over the next four years."
Tamas Nagy, co-head of EBRD Private Equity, added, "Food retail is one of the most active areas of investment for the EBRD, and this investment is a great opportunity for the Bank to support the scaling up of an innovative retail business model in the attractive Romanian market."
La Cocoș
Founded in 2014, La Cocoș has seen annual sales increase by 24% from 2018 to 2022. The company generated revenues worth €200 million in 2023.
Its business model focuses on offering around 10,000 SKUs at competitive prices, due to lower operational costs, to both individual customers and small businesses.
Anthony Stalker, partner of CEECAT Capital and chairman of the Investment Advisory Committee, commented, "We believe La Cocoș can grow into a national champion and regional leader in its sector."
Simona Gemeneanu, partner at Morphosis Capital, stated, "Our shared vision with CEECAT Capital and EBRD is to develop a chain of stores that meets the needs of both B2B and B2C clients and for La Cocoș to become a reference point for consumers across the country, thus contributing to economic growth and strengthening the local economy."
The retailer operates three stores in Ploiești and Bucharest and has announced plans to open a fourth location in Brașov, followed by a fifth in Pitești.
The discount retail sector in Romania is experiencing rapid growth, making it an attractive investment market.
