Press Release | St. Petersburg | 17 June 2021
Lenta to acquire Perm region retailer Semya for RUB 2.35 billion
St. Petersburg, Russia, 17 June 2021: Lenta IPJSC (MOEX & LSE: LNTA), one of the largest multi-format retail chains in Russia, today announces that its indirect subsidiary Lenta LLC has signed an agreement to acquire Semya Group, the fourth largest retailer in the Perm region, for a financial consideration of RUB 2.35 billion in cash.
Semya Group operates 75 stores in Perm city and the Perm region with total selling space of 46,600 square meters, including four hypermarkets, 27 supermarkets and 44 convenience stores.
This acquisition further supports Lenta's strategic expansion in the supermarket and convenience store segments, while the four conveniently located hypermarkets will establish Lenta as the leading player in the segment in Perm city. As a result of the transaction, Lenta will have a total food retail market share of approximately 7% in the Perm region and the combined business will enhance its position as the fourth largest retailer in Perm.
Vladimir Sorokin, Chief Executive Officer, commented:
"This acquisition creates multiple synergies for Lenta's future growth.
"The purchase of Semya's hypermarkets will create the largest player in this segment in the Perm region, while the chain's 71 supermarkets and convenience stores have some of the best locations in Perm and will create a solid base for strengthening our position and developing our network in the region. These stores represent a strong strategic fit for the expansion of our online express delivery offering not only in Perm itself but also in localities across the region where online delivery has substantial growth potential. This transaction enables Lenta to enhance its position in its core hypermarket segment and addresses several of the company's strategic priorities.
"Furthermore, this acquisition demonstrates our commitment to continue playing an active role in the consolidation of the grocery retail sector in Russia's regions. We are confident that this acquisition is a strong win for Lenta customers, employees and shareholders alike and we look forward to welcoming Semya's staff into the Lenta family."
Lenta plans to integrate the newly acquired supermarkets, supply chain infrastructure and Semya's 3,200 employees into the Lenta retail network. The Semya hypermarkets will switch to the Lenta brand, while the supermarkets will be rebranded as Super Lenta and the convenience stores will be transferred to the new Mini Lenta brand.
The transaction is expected to close in summer 2021, subject to regulatory approvals from the Russian Federal Antimonopoly Service (FAS).
For further information, please visit www.lentainvestor.com or contact:
EM (International Media Inquiries)
Lenta IPJSC (LSE and MOEX: LNTA) is a leading Russian multi-format food and FMCG retailer. The company operates hypermarkets, supermarkets, and recently launched a new proximity store format under the brand "Mini Lenta." It also provides customers the option to shop online via its click-and-collect and express delivery services. Lenta is Russia's largest hypermarket operator and the fourth largest food retailer overall by Sales. The company was founded in 1993 in St. Petersburg and as of March 31, 2021 operated 254 hypermarkets and 140 supermarkets in 89 cities across European Russia with more than 1.5 million square meters of Selling Space. The average Lenta hypermarket has approximately 5,500 square meters of selling space, the average Lenta supermarket has 800 square meters, and the Mini Lenta format is 500 meters on average. The company operates 13 distribution centers to supply all of its stores. 2020 Revenues were RUB 445 billion (approximately USD 6 billion).
This announcement includes statements that are, or may be deemed to be, "forward-looking statements." These forward-looking statements can be identified by the fact that they do not only relate to historical or current events. Forward-looking statements often use words such as "anticipate," "target," "expect," "estimate," "intend," "expected," "plan," "goal," "believe," or other words of similar meaning. By their nature, forward-looking statements involve risk and uncertainty because they relate to future events and circumstances, a number of which are beyond Lenta's control. As a result, actual future results may differ materially from the plans, goals, and expectations set out in these forward-looking statements. Any forward-looking statements made by or on behalf of Lenta speak only as of the date of this announcement. Except as required by any applicable laws or regulations, Lenta undertakes no obligation publicly to release the results of any revisions to any forward-looking statements in this document that may occur due to any change in its expectations or to reflect events or circumstances after the date of this document.