Lenta has signed an agreement to acquire Semya Group, the fourth-largest retailer in the Perm region, for financial consideration of c.€27m (RUB 2.35bn) in cash. Semya Group operates 75 stores in Perm city and the Perm region with total selling space of 46,600m², including four hypermarkets, 27 supermarkets and 44 convenience stores.
This acquisition further supports Lenta’s strategic expansion in the supermarket and convenience store segments, while the four conveniently located hypermarkets will establish Lenta as the leading player in the segment in Perm city. As a result of the transaction, Lenta will have a total food retail market share of approximately 7% in the Perm region and the combined business will enhance its position as the fourth largest retailer in Perm.
Vladimir Sorokin, Chief Executive Officer, commented: “This acquisition creates multiple synergies for Lenta’s future growth. The purchase of Semya’s hypermarkets will create the largest player in this segment in the Perm region, while the chain’s 71 supermarkets and convenience stores have some of the best locations in Perm and will create a solid base for strengthening our position and developing our network in the region. These stores represent a strong strategic fit for the expansion of our online express delivery offering not only in Perm itself but also in localities across the region where online delivery has substantial growth potential. This transaction enables Lenta to enhance its position in its core hypermarket segment and addresses several of the company’s strategic priorities. Furthermore, this acquisition demonstrates our commitment to continue playing an active role in the consolidation of the grocery retail sector in Russia’s regions. We are confident that this acquisition is a strong win for Lenta customers, employees and shareholders alike and we look forward to welcoming Semya’s staff into the Lenta family.”
Lenta plans to integrate the newly acquired supermarkets, supply chain infrastructure and Semya’s 3,200 employees into the Lenta retail network. The Semya hypermarkets will switch to the Lenta brand, while the supermarkets will be rebranded as Super Lenta and the convenience stores will be transferred to the new Mini Lenta brand.