ZAANDAM, THE NETHERLANDS - Ahold Delhaize is making some big moves with its international operations. The retailer has revealed its acquisition of Romanian retailer Profi Rom Food SRL from MidEuropa. The deal provides a great addition to Ahold Delhaize’s local brand Mega Image in the Romanian market. It is currently subject to approval from the regulatory authorities.
“I am very excited to welcome Profi into the Ahold Delhaize family,” Frans Muller, Ahold Delhaize’s Chief Executive Officer, said. “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.”
Profi is a leading traditional grocery retailer in Romania, operating 1,654 stores. In the 12 months ending June 2023, the company generated €2.5 billion ($2.65 billion) in sales. The acquisition will more than double the size of Ahold’s existing Romanian business, which has 969 stores. The strong format fit and complementary customer propositions between the Profi and Mega Image brands will allow the two to better serve the Romanian consumer.
Ahold expects to generate significant revenue growth and synergies from the transaction. The combination with Profi is expected to be sales growth and EBIT margin accretive (post synergies, and integration) to Ahold Delhaize Europe and EPS accretive to Ahold Delhaize, all in the first year after closing.
“I’d like to extend a very warm welcome to the full Profi team, we are very pleased to include them in our family,” Wouter Kolk, Chief Executive Officer of Ahold Delhaize Europe and Indonesia, said. “This step forward 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.”
Closing for the deal is expected in 2024. More details will be provided during the Q3 2023 Ahold Delhaize analyst conference call.
We look forward to seeing where Ahold expands next!
