Russian retailer Lenta has announced that its indirect subsidiary Lenta LLC has completed the acquisition of Semya Group for approximately RUB 2.45 billion (€28 million).
The purchase price reflects certain closing adjustments related to actual levels of cash, debt, and working capital of the business, the retailer added.
Semya Group Acquisition
As a result of the acquisition, which was approved by the Russian Federal Antimonopoly Service in July 2021, Lenta will have a total food retail market share of approximately 7% in the Perm region, and the combined business will enhance its position as the fourth largest retailer in Perm.
The retailer plans to integrate the newly acquired stores, supply chain infrastructure, and Semya’s employees into the Lenta retail network over the course of the next 12 months.
This acquisition supports Lenta’s strategic goals and creates multiple synergies for the business going forward.
Lenta CEO, Vladimir Sorokin commented, "We remain committed to our long-term goal of becoming one of the retail champions on the Russian retail market. The acquisition of Semya Group will support Lenta's expansion into smaller formats, while also creating a solid base for the development of our network and strengthening our position in the Perm region.
"This acquisition confirms our commitment to play an active role in the consolidation of the grocery retail sector in Russia's regions. Semya Group has a unique product assortment and high customer loyalty."
Sorokin added that one of the company's top priorities during the integration process would be to maintain and improve the current level of services in the acquired stores, as well as to benefit from the proven expertise of Semya Group in culinary and confectionary production.
"Moreover, Semya's store locations will enable Lenta to offer fast delivery across the entire city and support the development of our online business in the Perm region. We are very pleased to welcome Semya Group employees to the Lenta family," he added.
The acquisition of Semya retail chain follows closely behind Lenta's recent purchase of Billa Russia for €225 million.
© 2021 European Supermarket Magazine. Article by Conor Farrelly. For more Retail news, click here. Click subscribe to sign up to ESM: European Supermarket Magazine.