Carrefour has reached an agreement with the Louis Delhaize group to acquire the Cora and Match brands in France, thus strengthening its position in the French food retail market.
The Cora and Match brands have 60 hypermarkets and 115 supermarkets respectively and employ around 24,000 people in France. In 2022, they generated net sales of €5.2 billion (€4.3 billion excluding gasoline) and obtained an EBITDA of €189 million. These acquired stores present a very strong geographical complementarity with Carrefour, as they have a particularly strong market share in the east and north of France, where Carrefour has little presence. The transaction also includes the acquisition of the properties of 55 hypermarkets and 77 supermarkets.
The transaction is expected to close in the summer of 2024. The deal values the assets acquired at €1.05 billion and is expected to be cumulative in terms of adjusted EPS from the first year. The integration of the Cora and Match stores offers significant potential for synergies, estimated at 110 million euros of annual EBITDA three years after the effective completion of the transaction. The associated integration costs are estimated at 200 million euros, spread over two years, and will include investments and operating expenses.
In parallel to this acquisition, Carrefour has also reached an agreement with the Louis Delhaize group to acquire its 93% stake in Galimmo, owner of 52 shopping arcades adjacent to Cora stores.