The transaction is expected to close next year, Ahold Delhaize noted, subject to merger and competition regulations.
Ahold Delhaize will pay an enterprise value of approximately €1.3 billion to acquire the chain, corresponding to a lease-adjusted enterprise value of €1.8 billion (post-IFRS 16).
‘Welcome To The Family’
“I am very excited to welcome Profi into the Ahold Delhaize family,” commented Frans Muller, the latter’s chief executive. “We have followed the company’s trajectory for a while now and admire what the Profi team has been able to achieve.
“I strongly believe that Profi has an exciting growth pathway ahead and look forward to partnering with the team to further solidify our presence in Central and Southern Europe.”
Profi operates 1,654 stores in Romania, generating €2.5 billion in sales in the 12 months to June 2023. The acquisition will more than double Ahold Delhaize’s presence in the country, where it operates 969 stores under the Mega Image brand.
Ahold Delhaize’s presence in the country is largely focused on urban areas, and it noted that the acquisition of Profi will complement its footprint, enabling it to better serve both cities and rural areas.
‘European Best Practices’
“By joining our family, the combination will benefit from our European best practices in the fields of digitalisation, sourcing, extended local assortment, infrastructure and sustainability,” added Wouter Kolk, CEO of Ahold Delhaize Europe and Indonesia. “I am excited for the journey ahead.”
The retailer added that the transaction will have ‘no meaningful impact on ongoing capital allocation’ and capital return policies, nor limit its balance sheet capacity to pursue further acquisition opportunities.
In August, chief executive Muller said that Ahold Delhaize is “well prepared to navigate the complexities of the current business environment”, despite social tensions and climate effects impacting some of its businesses.