Italian supermarket group Conad has finalised an agreement for the takeover of 17 stores from L’Alco Group.
Last November, Conad Centro Nord achieved competition authority approval for the takeover of the assets in the Lombardy region, for a total cost of €23.7 million.
The sale is part of an arrangement with the creditors of L’Alco, whose debts total around €137 million.
Previously trading under the Despar, Eurospar and Interspar banners, the stores are located in provinces of Brescia (14 stores with over 15,000 square metres), Bergamo (two stores) and Lodi (one store).
From 23 February until the end of April, Conad Centro Nord plans to re-open the stores, updating their layout and expanding the assortment of private label products, according to Brescia Oggi.
The company, in agreement with local trade unions, has guaranteed that employment levels will be maintained.
Increase Market Share In Lombardy
The acquisition will enable Conad to increase its market share in Lombardy – in the province of Brescia alone it should grow by 2% by the end of 2022 (12.6% in H1 2021).
Conad Centro Nord closed 2021 with estimated revenues of over €1.85 billion, up 4.3% on the previous year.
Separately, the wholesale network of the L'Alco Group, operating under the Altasfera banner, was acquired by Verona-based Migross group for €31.5 million, which will maintain the cash & carry business.
The first rebranded Migross Cash&Carry opened in Lonato del Garda on 24 January, and the remaining seven will be opened over the coming months.