Lenta Completes Acquisition of Billa RussiaSource: RNS
Press Release | St. Petersburg | 3 August 2021
Lenta Completes Acquisition of Billa Russia Supermarket Business
St. Petersburg, Russia, 3 August 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 completed the acquisition of Billa Russia supermarket business.
As a result of the acquisition, which was approved by the Russian Federal Antimonopoly Service in July 2021, Lenta will become the #2 supermarket operator in Moscow and the Moscow region by number of stores.
The purchase price at closing amounted to ~EUR 225 million, reflecting certain closing adjustments related to actual levels of cash, debt and working capital of the business.
Lenta plans to integrate the 161 newly acquired supermarkets, supply chain infrastructure and Billa Russia employees into the Lenta retail network over the course of the next 12 months.
The acquisition significantly accelerates Lenta's strategic expansion in Moscow, adding prime retail locations that represent mature retail properties with a high sales density.
Vladimir Sorokin, CEO:
"Expansion in the supermarket segment is a high strategic priority for Lenta, and this transaction is transformative as it instantly doubles the company's footprint in this segment.
Additionally, these attractive store locations enable Lenta to further expand its online express delivery offering across all of Moscow, supporting its ambitious plans to significantly grow the Lenta Online business in the coming years.
We are excited by the new opportunities created by this acquisition, and we expect it to make a meaningful contribution to Lenta's revenue growth and performance."
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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 June 30, 2021, operated 255 hypermarkets and 151 supermarkets in 88 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 11 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.