Dutch wholesaler Sligro Food Group has announced that it is selling its Emté retail business to a consortium of Jumbo and Coop in a €410 million deal.
The proposed sale involves Emté's 130 supermarkets, its retail distribution centres in Kapelle and Putten, its meat plant in Enschede, and supporting operational and commercial departments at its head office in Veghel.
"In spite of the commitment and the appreciation of our customers, a future for Emté as an independent format was no longer the best strategic option," said Koen Slippens, CEO of Sligro Food Group.
"We have taken our time to carefully explore the alternatives, while respecting the interests of all stakeholders," Slippens added.
Sligro posted net profits of €81 million last year, representing an increase of 9.9% compared to the previous year, however, its Emté supermarket business saw growth of only 0.2%, down from the 1.4% growth experienced the year before.
Two thirds of the Emté business is set to be integrated at Jumbo, and the remaining third at Coop Netherlands. The two retail groups have previously cooperated on takeovers in the past and say that they are confident in this integration strategy.
Frits van Eerd, CEO of Jumbo Supermarkets, said that the proposed acquisition is a "fantastic step" in the business's development, allowing for future expansion.
"We see great opportunities with these stores to build further on our omnichannel strategy, which is aimed at us being available to our millions of customers at as many locations as possible, and whenever possible," van Eerd added.
Sligro and Jumbo are also expected to reach an agreement on a long-term supply contract position, with Sligro as the preferred supplier of La Place.
The transaction is set to be completed later this year.
© 2018 European Supermarket Magazine – your source for the latest retail news. Article by Sarah Harford. Click subscribe to sign up to ESM: The European Supermarket Magazine.