Polish retailer Eurocash has concluded an investment to acquire 49% shares in Arhelan retail chain, which operates over 100 stores in north-eastern Poland.
The investment in Arhelan is in line with the development strategy of the group, as it aims to create the largest supermarket chain in Poland based on owned and franchise stores.
Arhelan is one of the largest regional supermarket chains in Poland, operating in the Podlaskie, Mazowieckie, Lubelskie, and Warmińsko-Mazurskie provinces.
The group has been operating since 1991 and employs almost 2,000 people, with its sales revenues exceeding PLN 500 million in 2020.
The retailer hopes that support from the largest wholesale food distributor in Poland and the group's experience and know-how will enable faster development of the Arhelan chain of stores.
'Years Of Cooperation'
Jacek Owczarek, member of the management board at Eurocash Group, complimented the company's new partner, saying, "Thanks to many years of cooperation in the field of wholesale supply, we had the opportunity to learn about the operating philosophy of this chain.
"We have great respect for the people who created this organisation from scratch and successfully managed it in a very competitive market."
The agreement concluded by the parties includes that, at a later date, Eurocash will acquire an additional 1% stake in Arhelan, thus increasing its stake to 50%.
It also defines the rules of Arhelan's cooperation with the Eurocash Group, including the target operation of Arhelan within the franchise structures of the Delikatesy Centrum chain under the logo of Polskie Shops Arhelan and Delikatesy Centrum.
The transaction is subject to a number of conditions, including the consent of the president of the office of competition and consumer protection.
© 2021 European Supermarket Magazine – your source for the latest retail news. Article by Conor Farrelly. Click subscribe to sign up to ESM: The European Supermarket Magazine.