Mid Europa and BC Partners reportedly file bids for Romanian supermarket chain Profi

Mid Europa and BC Partners reportedly file bids for Romanian supermarket chain Profi
By bne IntelliNews November 21, 2016

Private equity funds Mid Europa and BC Partners have reportedly submitted binding bids for the Romanian supermarket chain Profi, owned by Polish Enterprise Fund VII (PEF VI), unnamed market sources have Mirsanu.ro.

PEF VI, a private equity fund managed by Enterprise Investors (EI), acquired 100% of Profi for €66mn in 2009 and made a €10mn follow-on investment in 2011. Since the initial transaction, Profi has increased its network at a fast pace. The transaction is estimated by market sources quoted by the website at around €600mn. If the value is confirmed, this would be the largest transaction on the Romanian retail market, significantly higher than the price paid by Auchan for Real supermarkets.

PEF VI announced in May it “plans to explore the strategic options available to Romania’s leading supermarket chain, Profi.” Local media had been long speculating that the Polish equity fund would seek to exit the shareholding of the Romanian retail chain.

The sale contract contract could be signed in the coming days, according to Mirsanu.ro. The two investment funds have already carried out due dilligence, assisted by their advisors. Both investment funds are assisted by consultants from Ernst & Young. EI is advised in the sale process by Citi and RTPR Allen & Overy. BC Parners is also advised by lawyers from Clifford Chance Badea, while Mid Europa Parners is advised by legal consultancy Bondoc & Asociatii.

Profi operates a network of nearly 500 stores in Romania and has the widest geographical coverage in the country, being present in 242 towns and villages. It has recently developed the Loco format targeting rural parts of the country. In 2015 Profi recorded €565mn in revenue and employed around 10,000 people.

In April, PEF VI signed an agreement to acquire 100% of Noriel Group, the largest toy and game distribution firm and retailer in Romania. EI, one of the largest private equity firms in Central and Eastern Europe, will provide €2mn funding to support further development. 

Related Articles

Czech CPI buys huge Central European retail portfolio

Czech real estate investor CPI Group has bought a large portfolio of Central European retail assets, local media reported on January 17. The investor, which has grown its holdings rapidly since ... more

EBRD, EIB lend €82mn to Moldova for key gas pipeline toward Romania

The European Bank for Reconstruction and Development (EBRD) and the European Investment Bank (EIB) will lend €41mn each and the European Union will add a €10mn grant to fund a pipeline to link ... more

NEPI, Rockcastle merger to create largest listed real estate player in CEE

South African New Europe Property Investments (NEPI) real estate investment fund, which is active and listed in Romania, announced on December 14 that it has concluded a framework agreement with ... more

Register here to continue reading this article and 2 more for free or purchase 12 months full website access including the bne Magazine for just $119/year.

Already a subscriber or registered - click here to recover access.

If you a IntelliNews Pro user - click here to login.

Thank you. Please complete your registration by confirming your email address.
A confirmation email has been sent to the email address you provided.

To continue viewing our content you need to complete the registration process.

Please look for an email that was sent to with the subject line "Confirmation bne IntelliNews access". This email will have instructions on how to complete registration process. Please check in your "Junk" folder in case this communication was misdirected in your email system.

Already a subscriber or registered - click here to recover access.

If you a IntelliNews Pro user - click here to login.

If you have any questions please contact us at sales@intellinews.com

Subscribe to bne IntelliNews website and magazine

Subscribe to bne IntelliNews website and monthly magazine, the leading source of business, economic and financial news and commentary in emerging markets.

Your subscription includes:
  • Full access to the bne content daily news and features on the website
  • Newsletters direct to your mailbox
  • Print and digital subscription to the monthly bne magazine
  • Digital subscription to the weekly bne newspaper

Already a subscriber or registered - click here to recover access.

If you a IntelliNews Pro user - click here to login.

bne IntelliNews
$119 per year

All prices are in US dollars net of applicable taxes.

If you have any questions please contact us at sales@intellinews.com

Register for free to read bne IntelliNews Magazine. You'll receive a free digital subscription.

Already a subscriber or registered - click here to recover access.

If you a IntelliNews Pro user - click here to login.

Thank you. Please complete your registration by confirming your email address.
A confirmation email has been sent to the email address you provided.

IntelliNews Pro offers daily news updates delivered to your inbox and in-depth data reports.
Get the emerging markets newswire that financial professionals trust.

"No day starts for my team without IntelliNews Pro" — UBS

Thank-you for requesting an IntelliNews Pro trial. Our team will be in contact with you shortly.

Dismiss