The Romanian market regulators have greenlighted the agreement according to which the investment fund Mid Europa Partners will buy 100% of the ownership stake in the Romanian supermarket chain Profi Rom Food from the Polish company Enterprise Investors, the Romanian Progresiv magazine reports.
The British investment fund Mid Europa Partners owns Serbian companies Imlek, Knjaz Milos, Bambi, Mlekara Subotica and Niska Mlekara, which operate within its holding Moji Brendovi.
Progresiv reports that the private Polish investment fund announced an agreement on the sale of 100% of shares in Profi Rom Food to Mid Europa Partners (MEP) for EUR 533 million in November 2016.
As stated, this is the biggest transaction of a private shares fund in Romania ever and the biggest one in the local retail industry following the acquisition of 20 hypermarkets of Romania's Real by France's Auchan for more than EUR 250 million.
Mid Europa Partners is one of the biggest independent private investment funds operating in the developing markets of Central and East Europe, and it manages funds of around EUR 4.3 billion, the article adds.
The Polish fund bought Romania's Profi in 2010 for EUR 66 million with a capital increase of EUR 10 million made a year later.
Following the acquisition, they carried out a thorough process of modernization, restructuring and expansion of the Romanian supermarket chain, which has seen an unprecedented expansion in the past two year, with 100 stores opened annually. They currently have 511 sales outlets, compared to 67 at the time of the acquisition.
The Romanian chain ended last year with a turnover of LEU 3.5 billion (around EUR 777 million), an increase of 38% compared to the previous fiscal year, according to the company data.