Sonae SGPS has reached an agreement to sell 24.99% of its grocery retail unit Sonae MC to CVC Advisers Company (CVC Funds).
Sonae MC is a top Portuguese grocery retailer with almost 1,000 multi-format stores, a €5.2 billion turnover, and €527 million underlying EBITDA.
Besides cash proceeds of €528 million, the transaction includes a contingent deferred cash payment of around €63 million to Sonae SGPS, which can bring the equity value for 100% of the share capital of Sonae MC up to €2.36 billion.
The transaction is not subject to any conditions precedent and is expected to close by August of this year.
CVC Funds will support the growth plan of Sonae MC. The deal is part of Sonae SGPS’s active portfolio management strategy, aiming to put in place the optimal shareholder structure for each of its businesses and join forces with highly experienced partners.
Meanwhile, Sonae MC reported a total turnover of €1.25 billion in the second quarter of its financial year, up 4.4% year-on-year and 1.3% on a like-for-like basis.
Hypermarkets accounted for €416 million (-1.3% y/y), supermarkets for €633 million (+2.3%) and new growth businesses and others for the remaining €209 million (+27%).
Net profit from continuing operations grew 23.9%, to €38 million, compared to the same period last year.
Sonae MC’s e-commerce operation grew 45% in the first half, having also grown in the second quarter.
In this period, the company focused on opening a Continente Labs cashierless store in Lisbon and launching the new Continente and Well’s online platforms.
Gross Capex amounted to €68 million in the first half, and major investments comprised 20 new company-operated stores, including six Continente Bom Dia proximity supermarkets and the refurbishment of eight food retail units.
In May 2021, Sonae MC reached an agreement to sell 50% share capital in Maxmat to an entity wholly owned by BME Group, which already holds the remaining 50% of the share capital of Maxmat. The sale is expected to generate a capital gain of approximately €40m.