Ahold Delhaize announced on Monday the acquisition of Profi Rom Food SRL, a leading grocery retailer in Romania. / Illustration courtesy: Ahold Delhaize
Ahold Delhaize plans to acquire Profi Rom Food SRL, a leading grocery retailer in Romania, for nearly $1.4 billion in a deal that would more than double the Dutch retailer’s footprint in the Eastern European country, the grocery retailer announced Monday.
The deal is subject to regulatory approval and is expected to close next year. Profi is currently owned by private-equity firm MidEuropa.
The Romanian grocer operates 1,654 stores and reported annual sales of about $2.65 billion. Ahold Delhaize currently operates 969 stores in Romania under the Mega Image banner, predominately in urban areas.
Purchasing Profi will extend Ahold Delhaize’s reach into rural areas, the grocer said.
“I am very excited to welcome Profi into the Ahold Delhaize family,” Ahold Delhaize CEO Frans Muller said in a statement. “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.”
Romania is an attractive market experiencing continued growth in consumer wealth and spending power, driven by strong economic fundamentals, Ahold Delhaize noted.
“I’d like to extend a very warm welcome to the full Profi team—we are very pleased to include them in our family,” CEO of Ahold Delhaize Europe & Indonesia Wouter Kolk said in a statement.
Looking to fortify its position in Central and Southern Europe, Kolk also revealed that the pending deal also underscores Ahold Delhaize’s 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,” Kolk said. “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.”
In the U.S., Ahold Delhaize USA (ADUSA) is a market leader on the East Coast, operating under the Stop & Shop, Giant Food, Giant/Martin’s, Food Lion and Hannaford banners.
At this year’s Groceryshop keynote in September, ADUSA CEO JJ Fleeman hinted at brick-and-mortar growth stateside.
“We see a lot of room still for organic expansion,” Fleeman said.
It has been an active period for grocery mergers and acquisitions activity in the U.S., with the pending Kroger Co. and Albertsons Cos. merger as well as Aldi’s unexpected deal to buy Winn-Dixie and Harveys Supermarkets from Southeastern Grocers, which Aldi US CEO Jason Hart called “a landmark moment in our company history.”
Ahold Delhaize will report its third quarter 2023 results on Nov. 8, which will include more details regarding the Profi acquisition, the retailer said.
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