Groupe Casino has completed the sale of a first set of 61 stores in France to Groupement Les Mousquetaires and has extended its purchasing alliance with the French retailer to include private-label food products.
The sale of the 61 stores, including hypermarkets, supermarkets, Franprix grocery shops and convenience stores, represents revenue of €563 million excluding value-added tax (VAT), based on an enterprise value of €209 million, including service stations, the statement said.
The stores' transfer to the Intermarché or Netto banners will take effect this month, following on from necessary conversion work, Casino said in a statement.
Second Group Of Stores
In addition, under the agreements signed in May 2023, Groupe Casino granted a call option to Groupement Les Mousquetaires, exercisable within three years at the latest, for a second group of stores representing €510 million in sales excluding VAT.
Les Mousquetaires acquired a 49% non-controlling interest in these outlets, making an initial lump-sum payment of €140 million to Casino, at the end of September 2023.
Separately, in July Casino agreed a long-awaited debt restructuring deal with creditors led by Czech billionaire Daniel Kretinsky to avert bankruptcy.
France's sixth-largest retailer was brought to the verge of default after years of debt-fuelled deals and recent losses in market share to rival supermarket groups.
Last week, Casino said that it had extended a deadline with its creditors to October. 3.
"This extension will enable ongoing negotiations on a lock-up agreement to continue," said Casino.
Casino's shares, which closed up 1.7% on Friday, have slumped by around 86% since the start of 2023.
Additional reporting by ESM