Wholesale group Metro AG has announced the sale of its Belgian operations, Makro Cash & Carry Belgium N.V. to Bronze Properties S.à r.l, following a review process.
The group made the announcement following what it said were 'significant efforts' to improve performance at the business. As part of its sCore growth strategy, the group no longer sees Belgium as a core business going froward, which has prompted the sale.
The wholesale giant will retain the real estate portfolio following the transaction, which it said will result in a one-off €150 million transaction impact and an average recurring EBITDA uplift of approx. €20 million on group level.
The value of the transaction has not been revealed.
It described Bronze Properties as a 'portfolio investor that has teamed up with retail specialist and financing partner GA Europe'.
In May, Metro AG said that the war in Ukraine 'severely impacted' profits across its operations.
'Careful And Comprehensive' Evaluation
“Within Metro’s sCore growth strategy that defines key areas of sustainable growth leading up to 2030, we have carefully and comprehensively evaluated the options available with respect to our Belgian operations," commented Dr Steffen Greubel, CEO of Metro AG.
“On behalf of our management board, I extend my sincere appreciation and thanks to our Belgian colleagues for their hard work and strong commitment in serving our customers over the past 50 years.”
In financial year 2020/21, Metro's Belgian operations achieved total sales of €646 million, while adjusted EBTIDA was negative, the group added.