Russian retailer Lenta has completed its acquisition of Billa Russia, in a deal that CEO Vladimir Sorokin has described as "transformative".
The group said that the Russian Federal Antimonopoly Service has approved Lenta's takeover of the Billa supermarket business, with the retailer now becoming the No. 2 supermarket operator in Moscow and the Moscow region in terms of store count.
The value of the deal was €225 million, reflecting certain closing adjustments related to actual levels of cash, debt and working capital of the business.
Lenta Expands In Moscow
Lenta said that the acquisition 'significantly accelerates its strategic expansion' in Moscow, with the addition of prime retail locations with a high sales density.
The group plans to integrate the 161 supermarkets in the Billa portfolio, as well as its employees, into its retail network over the next 12 months, it said.
'High Strategic Priority'
“Expansion in the supermarket segment is a high strategic priority for Lenta, and this transaction is transformative as it instantly doubles the company’s footprint in this segment," Sorokin commented. "Additionally, these attractive store locations enable Lenta to further expand its online express delivery offering across all of Moscow, supporting its ambitious plans to significantly grow the Lenta Online business in the coming years.
"We are excited by the new opportunities created by this acquisition, and we expect it to make a meaningful contribution to Lenta's revenue growth and performance.”
Lenta reported a 0.7% increase in sales in the first half of its financial year, it reported last week.
The granting of approval to Lenta's deal by Russia's competition authorities comes days after Magnit similarly received approval for its takeover of Dixy Group.