Ahold Delhaize, the international retail conglomerate, has unveiled its plans to acquire 100% of Profi Rom Food, a prominent Romanian food retailer. This strategic move, in partnership with MidEuropa, aims to bolster Ahold Delhaize’s local brand, Mega Image, in the Romanian market, where it currently operates 969 stores.
Profi is a well-established traditional food retailer in Romania, boasting a network of 1,654 stores across the country. In the most recent financial year, spanning until June 2023, Profi achieved a remarkable 2.5 billion euros in sales. This acquisition is poised to bring together two powerhouse brands, enhancing Ahold Delhaize’s existing presence and enabling more comprehensive service delivery to both urban and rural areas.
Frans Muller, CEO of Ahold Delhaize, expressed admiration for Profi’s accomplishments, stating, “We have been following the company’s trajectory for some time and admire what the Profi team has been able to achieve.” This sentiment underscores the confidence in the potential synergy between the two companies.
The acquisition represents a substantial growth opportunity for Ahold Delhaize, with the expectation of generating increased revenue and valuable synergies that will directly benefit customers. To facilitate this acquisition, Ahold Delhaize will finance the entire transaction through debt. The enterprise value is estimated at approximately €1.3 billion, corresponding to a lease-adjusted enterprise value of €1.8 billion.
The closing of the transaction is projected to take place in 2024, pending the satisfaction of customary closing conditions, including regulatory clearance. Notably, the acquisition is anticipated to yield positive results for Ahold Delhaize in the first year after closing, including improved sales, EBIT margin, and earnings per share.
Ahold Delhaize CEO Frans Muller expressed excitement about the addition of Profi to the Ahold Delhaize family, highlighting the growth potential of Profi and the commitment to further solidify their presence in Central and Southern Europe.
Wouter Kolk, CEO of Ahold Delhaize Europe and Indonesia, emphasized the strategic significance of this move, stating, “This is a step forward that strengthens our position in Central and Southern Europe.” He also emphasized the benefits of combining the strengths of both companies, including leveraging “European best practices in the fields of digitalization, sourcing, expanded local assortment, infrastructure, and sustainability.” This acquisition marks a promising step towards broader market reach and enhanced offerings for customers in the region.