Russian retailer Lenta has announced that it has agreed to acquire the supermarket business of Billa Russia for €215 million in cash, in a deal that it set to boost the retailer's presence in the Russian capital.
Lenta will integrate the 161 supermarkets, most of which are in and around Moscow, supply chain infrastructure and more than 5,400 Billa Russia employees into its own retail network, after which the Billa brand will be discontinued in Russia.
“The acquisition of Billa Russia’s supermarkets gives us access to mature stores with established customer traffic, including in central Moscow neighbourhoods, and instantly doubles Lenta’s footprint in the supermarket segment in terms of the number of stores overall," commented Lenta chief executive Vladimir Sorokin.
"Billa’s locations also enable Lenta to further expand its online express delivery offering across all of Moscow, supporting our ambitious plans to significantly grow the online business in the coming years."
The deal follows on from another major acquisition in the Russian market earlier this week, after Magnit said it had agreed to acquire 100% of shares in the Dixy retail chain for around $1.25 billion.
Lenta said the transaction, expected to be finalised this summer, would give it food retail market share of about 3% in Moscow and the Moscow region, boosting its presence in locations with high sales density.
Sorokin said the deal supported Lenta's plans to grow its online business in the coming years and to continue developing the grocery retail sector.
'The acquisition is expected to make a meaningful contribution to Lenta’s revenue growth and performance,' the retailer said in a statement.
The transaction is expected to close in summer 2021, subject to regulatory approval.