Zaandam, the Netherlands, October 30, 2023 – Ahold Delhaize is pleased to announce that it has agreed to acquire 100% of Romanian grocery retailer Profi Rom Food SRL (Profi) from MidEuropa, subject to approval from the regulatory authorities. This acquisition provides a strong format fit and complementary customer proposition to Ahold Delhaize’s great local brand Mega Image in the Romanian market. Romania is an attractive market experiencing continued growth in public wealth and spending power, driven by strong economic fundamentals.
Profi is a leading traditional grocery retailer in Romania, operating 1,654 stores in the country. It is known for its strong assortment and value for customers. In the twelve months ending June 2023, the company generated €2.5 billion in sales.
The acquisition will more than double the size of Ahold Delhaize’s existing Romanian business, which operates under the Mega Image brand and has 969 stores, predominantly in urban areas. The combination will complement and expand Ahold Delhaize’s existing Romanian footprint to better serve both urban and rural areas. The strong format fit and complementary customer propositions between the Profi and Mega Image brands, will allow them to better serve the Romanian consumer, driving both sales growth and profitability.
Frans Muller, Ahold Delhaize’s Chief Executive Officer, said: “I am very excited to welcome Profi into the Ahold Delhaize family. We have followed the company’s trajectory for a while now and admire what the Profi team has been able to achieve. I strongly believe that Profi has an exciting growth pathway ahead, and look forward to partnering with the team to further solidify our presence in Central and Southern Europe.”
Wouter Kolk, Chief Executive Officer of Ahold Delhaize Europe & Indonesia, said: “I’d like to extend a very warm welcome to the full Profi team, we are very pleased to include them in our family. This step forwards fortifies our position in Central and Southern Europe, it also underscores our trust in the potential of the region. Both Mega Image and Profi have been serving Romanian customers successfully in the past decades, which translated into increased loyalty and growth. By joining our family, the combination will benefit from our European best practices in the fields of digitalization, sourcing, extended local assortment, infrastructure and sustainability. I am excited for the journey ahead.”
The transaction is subject to conditions including merger clearance under applicable competition laws and regulations. Closing is expected for 2024.
The transaction will have no meaningful impact on ongoing capital allocation and capital return policies, nor limit balance sheet capacity to pursue further acquisition opportunities.
More details will be provided during the Q3 2023 Ahold Delhaize analyst conference call.
BofA Securities and Goldman Sachs acted as financial advisors to Ahold Delhaize; CMS and GNP Guia Naghi & Partners acted as legal advisors.
This communication includes forward-looking statements. All statements other than statements of historical facts may be forward-looking statements. Words and expressions such as contributes, strong, continued, growth, will, better, expects/expected, improved, believe, further, fortifies, potential, journey, opportunities or other similar words or expressions are typically used to identify forward-looking statements. Forward-looking statements are subject to risks, uncertainties and other factors that are difficult to predict and that may cause actual results of Koninklijke Ahold Delhaize N.V. (the “Company”) to differ materially from future results expressed or implied by such forward-looking statements. Such factors include, but are not limited to, the risk factors set forth in the Company’s public filings and other disclosures. Forward-looking statements reflect the current views of the Company’s management and assumptions based on information currently available to the Company’s management. Forward-looking statements speak only as of the date they are made and the Company does not assume any obligation to update such statements, except as required by law.