Lenta International PJSC Acquisition (2546C)
June 17 2021 - 10:30AM
UK Regulatory
TIDMLNTR TIDMLNTA
RNS Number : 2546C
Lenta International PJSC
17 June 2021
Press Release | St. Petersburg | 17 June 2021
Lenta to acquire Perm region retailer Semya for RUB 2.35
billion
St. Petersburg, Russia , 17 June 2021: Lenta IPJSC (MOEX &
LSE: LNTA), one of the largest multi-format retail chains in
Russia, today announces that its indirect subsidiary Lenta LLC has
signed an agreement to acquire Semya Group, the fourth largest
retailer in the Perm region, for a financial consideration of RUB
2.35 billion in cash.
Semya Group operates 75 stores in Perm city and the Perm region
with total selling space of 46,600 square meters, including four
hypermarkets, 27 supermarkets and 44 convenience stores.
This acquisition further supports Lenta's strategic expansion in
the supermarket and convenience store segments, while the four
conveniently located hypermarkets will establish Lenta as the
leading player in the segment in Perm city. As a result of the
transaction, Lenta will have a total food retail market share of
approximately 7% in the Perm region and the combined business will
enhance its position as the fourth largest retailer in Perm.
Vladimir Sorokin, Chief Executive Officer, commented:
"This acquisition creates multiple synergies for Lenta's future
growth.
"The purchase of Semya's hypermarkets will create the largest
player in this segment in the Perm region, while t he chain's 71
supermarkets and convenience stores have some of the best locations
in Perm and will create a solid base for strengthening our position
and developing our network in the region. These stores represent a
strong strategic fit for the expansion of our online express
delivery offering not only in Perm itself but also in localities
across the region where online delivery has substantial growth
potential. This transaction enables Lenta to enhance its position
in its core hypermarket segment and addresses several of the
company's strategic priorities.
"Furthermore, this acquisition demonstrates our commitment to
continue playing an active role in the consolidation of the grocery
retail sector in Russia's regions. We are confident that this
acquisition is a strong win for Lenta customers, employees and
shareholders alike and we look forward to welcoming Semya's staff
into the Lenta family."
Lenta plans to integrate the newly acquired supermarkets, supply
chain infrastructure and Semya's 3,200 employees into the Lenta
retail network. The Semya hypermarkets will switch to the Lenta
brand, while the supermarkets will be rebranded as Super Lenta and
the convenience stores will be transferred to the new Mini Lenta
brand.
The transaction is expected to close in summer 2021, subject to
regulatory approvals from the Russian Federal Antimonopoly Service
(FAS).
For further information, please visit www.lentainvestor.com or
contact:
Lenta Lenta
Mariya Filippova Timothy Post
Head of Public Relations and Government Investor Relations Officer
Affairs timothy.post@lenta.com
maria.filippova@lenta.com
EM (International Media Inquiries)
Lenta@em-comms.com
About Lenta
Lenta IPJSC (LSE and MOEX: LNTA) is a leading Russian
multi-format food and FMCG retailer. The company operates
hypermarkets, supermarkets, and recently launched a new proximity
store format under the brand "Mini Lenta." It also provides
customers the option to shop online via its click-and-collect and
express delivery services. Lenta is Russia's largest hypermarket
operator and the fourth largest food retailer overall by Sales. The
company was founded in 1993 in St. Petersburg and as of March 31,
2021 operated 254 hypermarkets and 140 supermarkets in 89 cities
across European Russia with more than 1.5 million square meters of
Selling Space. The average Lenta hypermarket has approximately
5,500 square meters of selling space, the average Lenta supermarket
has 800 square meters, and the Mini Lenta format is 500 meters on
average. The company operates 13 distribution centers to supply all
of its stores. 2020 Revenues were RUB 445 billion (approximately
USD 6 billion).
Forward-Looking Statements
This announcement includes statements that are, or may be deemed
to be, "forward-looking statements." These forward-looking
statements can be identified by the fact that they do not only
relate to historical or current events. Forward-looking statements
often use words such as "anticipate," "target," "expect,"
"estimate," "intend, " "expected," "plan," "goal," "believe," or
other words of similar meaning. By their nature, forward-looking
statements involve risk and uncertainty because they relate to
future events and circumstances, a number of which are beyond
Lenta's control. As a result, actual future results may differ
materially from the plans, goals, and expectations set out in these
forward-looking statements. Any forward-looking statements made by
or on behalf of Lenta speak only as of the date of this
announcement. Except as required by any applicable laws or
regulations, Lenta undertakes no obligation publicly to release the
results of any revisions to any forward-looking statements in this
document that may occur due to any change in its expectations or to
reflect events or circumstances after the date of this
document.
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END
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