Russian retailer Lenta has announced that it has agreed to acquire Perm-based retail chain Semya Group for RUB2.35 billion (€27 million) in cash via its indirect subsidiary Lenta LLC.
Semya is the fourth-largest retailer in the Perm region, operating 75 stores in Perm city and the Perm region with a total selling space of 46,600 square metres.
Its store network comprises four hypermarkets, 27 supermarkets, and 44 convenience stores.
The transaction, subject to regulatory approvals from the Russian Federal Antimonopoly Service (FAS), is expected to close in the summer of 2021.
The acquisition supports Lenta’s strategic expansion in the supermarket and convenience store segments.
In addition, the four Semya hypermarkets will establish Lenta as the leading player in the segment in Perm city.
The transaction will see Lenta gain a total food retail market share of approximately 7% in the Perm region.
Last month, Lenta chief financial officer Rud Pedersen said that it was an "opportune time" for further consolidation following the announcement that Lenta is to acquire the assets of Billa Russia.
Chief executive officer of Lenta, Vladimir Sorokin, commented, “This acquisition creates multiple synergies for Lenta’s future growth. The purchase of Semya’s hypermarkets will create the largest player in this segment in the Perm region, while the chain’s 71 supermarkets and convenience stores have some of the best locations in Perm and will create a solid base for strengthening our position and developing our network in the region.
“These stores represent a strong strategic fit for the expansion of our online express delivery offering not only in Perm itself but also in localities across the region where online delivery has substantial growth potential. This transaction enables Lenta to enhance its position in its core hypermarket segment and addresses several of the company’s strategic priorities.”
Lenta plans to integrate the newly acquired supermarkets, supply chain infrastructure and Semya’s 3,200 employees into the Lenta retail network.
The Semya hypermarkets will switch to the Lenta brand, while the supermarkets will be rebranded as Super Lenta and the convenience stores will be transferred to the new Mini Lenta brand.
Sorokin added that the acquisition demonstrates the company’s commitment to continue playing an active role in consolidating the grocery retail sector in Russia’s regions.
“We are confident that this acquisition is a strong win for Lenta customers, employees and shareholders alike and we look forward to welcoming Semya’s staff into the Lenta family,” he stated.