Commenting on the sale, Dave Lewis, President of the Tesco Group, said: – We have seen a significant improvement in our business performance in Central Europe, but we still see market challenges in Poland. This transaction will allow us to focus in the region on operations in the Czech Republic, Hungary and Slovakia, where we have a stronger market position and growth opportunities, and achieve margins and financial results that are of value to the Group. I would like to thank all our colleagues from Tesco in Poland for their commitment to serve customers in Poland for so many years. The energy and commitment they have shown over the past two years, transforming Tesco in Poland into a two-format model, have been incredibly impressive. We believe that this transaction is the best way to secure the future of the company for our employees and clients in Poland.
The transaction value is equal to Enterprise Value (EV) in the amount of PLN 900 million. The transaction must be verified and approved by regulatory authorities. It is expected to be finalized in the fourth quarter of 2020. Importantly, the Tesco group will continue to sell the remaining 19 properties not covered by the sale transaction. This group includes shop in Bielsko-Biała at Warszawska Street and store in Katowice at Chorzowska street (Silesia).
Netto Polska currently operates 386 stores, and the agreement concluded with Tesco Polska has strategic value for business development, as it will allow Netto to fully use the proven 3.0 concept throughout the Polish market.
The President of Netto Polska is enthusiastic about the perspective of introducing the Netto concept throughout the country: – By consolidating both retail chains in the development market, we are making a significant step in implementing our group’s strategy, becoming one of the leading players on one of the largest markets in Europe – he says Janusz Stroka.
Salling Group plans to transform the acquired Tesco stores into Netto 3.0 no later than 18 months after the transaction is completed. Until then, they will operate under the Tesco brand. A detailed plan for each store will be developed in the coming months.
– Polish products and local suppliers form an integral part of our future offer – adds Janusz Stroka. – The transaction creates great development opportunities for both our employees and our business partners. We want to continue working with our best suppliers and partners to jointly provide customers with the value they expect and for which we are known. I am convinced that together with our new colleagues we will provide Polish customers with an unrivaled offer, attractive value for money and great shopping experience in the coming years.
BM / pless.pl, source: press materials
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