Eurocash To Finalise Frisco Acquisition Following EBRD Loan
Polish retailer Eurocash has said that it has concluded a loan agreement with the EBRD, which will be used to finalise the acquisition of online retailer Frisco SA.
The loan agreement, valued at €50 million, was concluded on 9 June, and the loan period is five years, the retailer said.
"The investment in Frisco is another element of our strategy aimed at supporting independent trade in Poland through the development of innovative retail formats and technological solutions," commented Jacek Owczarek, member of the board of Eurocash Group.
He added that following the acquisition, Eurocash will be able to take advantage of Frisco's "advanced know-how in online sales, which will allow us to develop this area for our clients – owners of independent retail stores".
According to Eurocash, the financing obtained by the EBRD will also enable the group to manage working capital in its current operating activities.
Retail sales rose by double digits at Eurocash in the first quarter of its financial year, with the group reporting total sales of PLN 5.92 billion (€1.3 billion) for the period.
However it posted a net loss of PLN 62 million (€13.4 million) for the quarter compared to a net loss of PLN 40 million in the corresponding period last year, largely due to leasing contracts in accordance with IFRS 16 standards.
Sales in its retail segment were up 12% year-on-year, however, with wholesale sales rising by 6%.
It announced its plans to acquire a majority stake in Frisco earlier this year, having formed a strategic partnership with the business in 2014.
Last year, the online retailer opened a new, fully-automated warehouse in Klaudyn, near Warsaw, to increase its customer base.
Other retailers that the EBRD has supported in recent months, through loan agreements, include Ukraine's Fozzy Group and Migros Turkey.
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