Romanian supermarket and convenience store chain Profi, controlled by the investment fund Mid Europa Partners, contracted from the European Bank for Reconstruction and Development a RON77.5mn (€15.7mn) senior unsecured five-year loan, including a 2.5-year grace period, according to an EBRD statement.
The loan will support the financing of the company's capex and permitted acquisitions programme in 2021-2025, consisting of new stores opening, refurbishments and warehouse investments. Profi currently operates over 1,400 stores locally. Around 400 are operated under franchise by small entrepreneurs, and the company plans to accelerate its expansion through stores franchised to entrepreneurs.
The company wants to open several hundred stores across the country through this system. The retailer announced plans to open 200 new stores per year on average and become the second-biggest player on the local market by 2024.
For comparison, in 2020, Profi opened 237 new stores ending the year with 1,404 units. From 67 stores in 2010, Profi has grown to be the local network with the broadest geographical coverage. The retailer has more than 22,000 employees.
In 2017, EBRD, invested alongside Mid Europa Fund IV, in a €25mn equity stake to further support the expansion of the network.
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