European Supermarket Magazine has announced that the Dutch retailer Ahold Delhaize has announced the acquisition of 100% of the Romanian grocery store Profi Rom Food SRL from MidEuropa.

The transaction is expected to be completed next year, said Ahold Delhaize, subject to merger and competition regulations.

Ahold Delhaize will pay an enterprise value of approximately 1.3 billion EUR to acquire the chain, which corresponds to an enterprise value adjusted for leasing of 1.8 billion EUR (according to IFRS 16). As our magazine has already reported, MidEuropa Partners has been seeking a buyer for Profi since last month.

'Welcome to the family'

"I'm very excited to welcome Profi to the Ahold Delhaize family," commented Frans Muller, CEO of Ahold Delhaize. "We've been following the company's trajectory for some time, and we admire what the Profi team has achieved.

"I strongly believe that Profi has an exciting growth path, and I look forward to working with the team to further strengthen our presence in Central and Southern Europe."

Profi operates 1,654 stores in Romania, generating 2.5 billion euros in sales in the 12 months ending in June 2023. The acquisition will more than double Ahold Delhaize's presence in the country, where it operates 969 stores under the Mega Image brand.

Ahold Delhaize's presence in the country is mostly concentrated in urban areas, and it said that the acquisition of Profi will complement its footprint, allowing it to better serve both urban and rural areas.

"Best European practices"

"By joining our family, the combination will benefit from the best European practices in the areas of digitalization, sourcing, extended local assortment, infrastructure, and sustainability," added Wouter Kolk, CEO of Ahold Delhaize Europe & Indonesia. "I'm excited about the journey ahead."

The retailer added that the transaction will not have a "significant impact on current capital allocation" and capital return policies, nor will it limit the balance sheet's ability to pursue additional acquisition opportunities. The Competition Council is set to review and approve the transaction.