Sonae SGPS, SA has announced that its subsidiary Sonae MC has reached an agreement to sell its 50% share capital in Modelo - Distribuição De Materiais De Construção, S.A. (Maxmat) to Cimentos Estrada Pedra SGPS, Lda.
The transaction will generate net proceeds of approximately €65 million for Sonae MC.
Cimentos Estrada Pedra is wholly owned by Building Materials Europe (BME Group), which already owns the remaining 50% stake of Maxmat.
BME Group and Sonae MC will maintain a close relationship in the future, the company added. Maxmat will continue to leverage Sonae MC’s footprint to support its growth strategy.
Stronger Balance Sheet
The divestiture will allow Sonae MC to strengthen its balance sheet further and continue to actively manage its portfolio while capitalising on an attractive transaction to drive shareholder value, the company noted.
Maxmat is a hard discount retailer in the do-it-yourself, construction, bath and garden segment.
It operates a network of 30 stores and employs around 500 people.
Maxmat generated revenue of €116 million in 2020.
The deal, subject to customary closing conditions, is expected to conclude in the third quarter of this year.
First Quarter Performance
Sonae MC, which owns Portugal's largest food retailer, reported a net profit of €1 million in the first quarter of its financial year on robust sales, despite the COVID-19 pandemic.
The group, which runs around 300 Continente hypermarkets and large supermarkets and non-food stores such as Worten consumer electronics shops, Sportzone stores and other retail chains, reported a net loss of €59 million between January and March 2020, due to a high level of provisions as the pandemic hit the country.