X5 Retail Group And A&NN Group Announce Completes Deal With Spar Retail
X5 Retail Group ('X5' or the 'Company'), a leading Russian food retailer, and A&NN Investments ltd, one of biggest privately-owned investment groupings, announce the acquisition by X5 Retail Group of 100% stake in SPAR Retail, owned by A&NN Investments Ltd. SPAR Retail operates 26 stores under the "SPAR" brand in Moscow (11), Moscow Region (7) and Vladimir (8), from. The transaction has been approved by the Russian Federal
The average selling space of the acquired stores ranges from 400 sq m to 1,600 sq m. The majority of the acquired stores will be integrated into the "Perekrestok" supermarket format, with only a few stores to be rebranded as "Pyaterochka".
The Company currently operates 1,300 Pyaterochka proximity stores and over 200 Perekrestok supermarkets in Moscow and the Moscow Region as well as 12 Pyaterochka stores in Vladimir.
Organic growth remains the key growth priority for X5. At the same time, the Company does not rule out the possibility of opportunistic local acquisitions to the extent they add value to the business, are in line with the Company's strategy and its management and financial capacities and do not negatively impact X5's on-going operations.
Stephan DuCharme, CEO, X5 Retail Group:
"The A&NN Investments Ltd team has made a significant contribution in transforming the SPAR stores into a modern retail chain tailored for a successful integration with X5 Retail Group - one of the leaders on the Russian food retail market. The transaction will enable Perekrestok to further consolidate its leadership position in Moscow and the Moscow region as an operator of modern supermarkets focused on the middle class, offering an ever larger number of customers the advantages of shopping at Perekrestok".
Dmitry Dorofeev, Chairman of the Supervisory Board, X5 Retail Group:
"The acquisition of this asset is not the first transaction between Alfa Group and Alexander Mamut's companies. We are confident that this successful experience will open up new opportunities for business development between our groups".