French retailer Casino has announced that it has completed the sale of 545 Leader Price stores in France, two Casino supermarkets, and three warehouses to Aldi France for €717 million.
It brings the value of completed non-strategic asset disposals to €2.8 billion since July 2018.
The proceeds from the disposal amounted to €683 million after taking into account €34 million of net liabilities transferred with the stores.
Out of the €683 million, the company has received €648 million and the remaining €35 million will be paid in the event of compliance with certain operational indicators during a transition period.
The agreement includes a transition period, running throughout 2021, during which the Casino will manage the day-to-day operations until the stores are converted to the Aldi banner, the retailer added.
Casino Group chairman and CEO Jean-Charles Naouri said, "The sale of Leader Price to Aldi, a major player in the discount retail segment, is fully in line with the Group's transformation plan, which was launched in 2018.
"Casino Group will now fully focus on its most buoyant formats, e-commerce, premium and convenience, and on its new high-growth energy and data businesses."
Casino may also sell additional Leader Price stores to Aldi for an amount of up to €11 million in the near future.
Casino will retain the ownership of the Leader Price brand and continue operations in France and other countries under certain conditions agreed with Aldi.
The group will keep its profitable wholesale activity for 200 Leader Price franchise stores and external or internal clients such as Franprix, Casino Géant and Casino supermarkets.
The deal follows information and consultation with the employee representative bodies and approval of the French Competition Authority.
© 2020 European Supermarket Magazine – your source for the latest retail news. Article by Dayeeta Das. Click subscribe to sign up to ESM: The European Supermarket Magazine.