X5 Retail Group Completes Acquisition of Paterson Supermarket Chain
04 Dec 2009
Amsterdam, 4 December 2009 - X5 Retail Group N.V., Russia's largest food retailer in terms of sales (LSE ticker: “FIVE”), announced today that it has completed the acquisition of Paterson supermarket chain. X5 received all necessary approvals for the transaction, including approval of the Company’s Supervisory Board and an unconditional consent from the Russian Federal Anti-Monopoly Service (FAS).
In accordance with the agreement, X5 purchased 100% of the business and assets of Paterson for a price of US $189.5 million (equity value) plus assumption of Paterson’s net debt in the amount of approximately US $85 million.
Paterson is an excellent strategic and operational fit, which offers attractive value for X5’s shareholders. This acquisition reinforces X5's number one position in supermarkets, providing high quality locations in key geographic markets with strong demographics for this format. X5 expects to realize significant synergies from the rebranding and operational integration of Paterson stores, with strong upside potential in sales density, profitability and cash flow generation.
X5 plans to start the integration process in the first quarter of 2010 and finalize it by midyear.
|
