Carrefour has entered into an agreement with Dairy Farm to acquire Wellcome Taiwan, consolidating its position as the leading multi-format food retailer in that market. The transaction involves 224 proximity stores in quality locations (199 Wellcome - average sales area of 420m² - and 25 Jasons - average sales area of 820m²) as well as a warehouse (including ownership of the real estate and land). The transaction’s enterprise value is €97m. Wellcome Taiwan posted net sales of around €390m in 2019.
By combining these businesses, customers and team members will benefit from the group’s greater strength and scale. Thus, the quality, prices, and service offered to Taiwanese consumers could be improved.This acquisition, carried out under attractive conditions, allows Carrefour to accelerate its development in Taiwan in the fast-growing proximity format. Carrefour will thus become the local number 2 in this format.
Carrefour currently operates 137 stores in Taiwan, including 69 proximity stores under the Market banner. The company plans to convert the Wellcome stores to the Market banner within 12 months after the closing of the transaction, and then convert Jasons stores to a Carrefour premium banner. The converted stores will benefit from Carrefour’s commercial policy and purchasing conditions. The Group thus plans to improve commercial density and optimize the cost structure.