Lenta Completes Acquisition of Semya GroupSource: RNS
Press Release | St. Petersburg | 26 August 2021
Lenta Completes Acquisition of Semya Group Business
St. Petersburg, Russia, 26 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 Semya Group business.
The purchase price at closing amounted to ~RUB 2.45 billion, reflecting certain closing adjustments related to actual levels of cash, debt and working capital of the business.
As a result of the acquisition, which was approved by the Russian Federal Antimonopoly Service in July 2021, 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.
Lenta plans to integrate the newly acquired stores, supply chain infrastructure and Semya's employees into the Lenta retail network over the course of the next 12 months.
This acquisition support Lenta's strategic goals and creates multiple synergies for the business going forward.
Vladimir Sorokin, Chief Executive Officer, commented:
"We remain committed to our long-term goal of becoming one of the retail champions on the Russian retail market. The acquisition of Semya Group will support Lenta's expansion into smaller formats, while also creating a solid base for the development of our network and strengthening our position in the Perm region. This acquisition confirms our commitment to play an active role in the consolidation of the grocery retail sector in Russia's regions.
Semya Group has a unique product assortment and high customer loyalty. One of our top priorities throughout the integration process will be to maintain and improve the current level of services in the acquired stores, as well as to benefit from the proven expertise of Semya Group in culinary and confectionary production. Moreover, Semya's store locations will enable Lenta to offer fast delivery across the entire city and support the development of our online business in the Perm region.
We are very pleased to welcome Semya Group employees to the Lenta family."
For further information please contact:
Head of Investor Relations
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 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.