Lenta announces the completion of purchase of Kesko food retail business in Russia

Lenta completes acquisition of Kesko food retail business in Russia from Kesko

St. Petersburg, Russia, 2016-Dec-01 — /EPR Retail News/ — Lenta, (LSE, MOEX: LNTA) one of the largest retail chains in Russia, is pleased to announce the completion of the purchase of the the Kesko food retail business in Russia (“KFR”), currently operating under the K-Ruoka brand, on November 30, 2016.

Assets acquired
The KFR assets consist of 10 hypermarkets and one supermarket operating under the K-Ruoka brand in St. Petersburg and the Leningradskiy region as well as three land plots in Moscow and the Leningradskiy regions. Most of the hypermarkets were opened in 2012-2015 and two stores were opened during 2016. Total selling space of the acquired stores is approximately 42,500 sq.m, of which approximately 40,200 sq.m are owned and approximately 2,300 sq.m are rented. The stores are compatible in terms of size and layout with existing Lenta compact and supercompact hypermarket formats, and almost all of the store locations are highly complementary to Lenta’s existing stores in Saint-Petersburg and the Leningradskiy region. The high proportion of owned stores is in line with Lenta’s store ownership strategy. The KFR business and assets are owned by six legal entities which have been purchased as part of the transaction.

Lenta’s Chief Executive Officer, Jan Dunning said:

“We are very pleased to have completed the acquisition of the Kesko retail business in Russia. The acquisition will significantly strengthen our network in St. Petersburg, giving many more customers the opportunity to shop at a Lenta store close to their homes. Lenta will become the largest hypermarket operator in the city, but we still see good opportunities for further growth in and around St. Petersburg, so will continue our organic expansion in both hypermarket and supermarket formats.

The stores have excellent urban locations and well-trained store teams who we welcome to the Lenta family. We will soon operate the stores under the Lenta brand, with Lenta assortment, supply chain and business processes. We expect the integration process to be largely complete by year-end.

With this acquisition, we now expect to open at least 50 new hypermarkets in 2016. While Lenta remains primarily focused on its successful organic expansion, we welcome opportunities to augment this by acquiring high quality assets such as the Kesko stores. Scale is becoming increasingly important in the Russian market which is likely to lead to consolidation of both larger and smaller players over time. Lenta is well positioned to selectively take advantage of any opportunities that may arise in the future.”

Strategic rationale

  • The acquired stores have a very good fit with Lenta given their high quality, complementary locations; store sizes and designs compatible with the Company’s existing formats; high quality of construction; and well trained and motivated staff. The combination of these factors with Lenta’s well-known brand and attractive consumer proposition is expected to enable rapid and successful integration;
  • The acquisition strengthens Lenta’s market position in St. Petersburg, Russia’s 2nd largest city. Lenta operates 22 hypermarkets and nine supermarkets in the Saint-Petersburg/Leningradskiy region with total selling space of 144k sq.m – approximately 15% of the Company’s total selling space in Russia as of 30 November 2016. The addition of the KFR stores will take Lenta’s total presence in the St. Petersburg/Leningradskiy region to 32 hypermarkets and 10 supermarkets with around 186k sq.m of selling space. The company envisions significant further expansion in the Saint-Petersburg/Leningradskiy region;
  • Given the quality of KFR stores and locations, the acquisition is expected to deliver attractive returns, broadly in line with returns on organic expansion.

Approvals and financing
Approval of the Federal Antimonopoly Service of the Russian Federation (“FAS Russia”) was received during November. The transaction has closed and no further approvals are required. Some administrative actions such as registration of assets and leases and renewal of certain licenses are required and it is expected that these will be largely completed before year end 2016. The transaction was financed using Lenta’s existing cash and a new long-term loan facility with a fixed interest rate below current Central Bank key rate which will lead to further reduction of the Company’s average effective cost of debt.

JP Morgan and VTB Capital acted as advisors to Lenta on this transaction.

Purchase price
The aggregate transaction consideration is Rub 11.4bn, an increase of Rub 0.4bn due to closing adjustments when compared to the aggregate base transaction consideration of Rub 11.0bn given in our earlier announcement. The difference is due to a higher than initially planned amount of cash and cash-like items on the balance sheet at closing. Lenta estimates that the replacement value of the acquired real estate and other fixed assets, positive working capital and other non-fixed assets is approximately equal to the purchase price.

Integration of KFR with Lenta will begin immediately. Each store will be closed for approximately one week from December 1st, then reopened as a Lenta store. The stores will operate in the same way as other Lenta stores in St. Petersburg under the Lenta brand, with Lenta assortment, supply chain, IT and business processes. Former KFR employees are now Lenta employees. Every effort will be made to minimize disruption for customers and employees during this integration period. Lenta considers the well-trained store staff to be one of the strengths of the business and welcomes them to the Lenta team. No redundancies among store staff are expected. KFR headquarters functions are being integrated into Lenta headquarters. Operationally, the integration is expected to be largely complete by year-end 2016.

Guidance related to the acquisition

  • Sales – the effect of the acquisition on Lenta 2016 sales will not be material (approximately 0.2% of total sales in 2016), given the short period between closing and year end 2016, and closure of the stores during part of this period in December for rebranding and other integration activities. The acquisition is expected to add around 3-4p.p. to Lenta sales growth in 2017 after taking into account minor cannibalization effects. The stores are expected to deliver sales densities at or above Lenta’s average by 2018;
  • EBITDA and Net Income margins – in 2016 EBITDA margin will be negatively impacted by around 0.1p.p. and Net income margin will be impacted by approximately 0.2p.p due to one-off integration/M&A related costs. In 2017 the overall effect on Lenta EBITDA margin and Net income margin is not expected to be material. The stores are expected to deliver margins at or above Lenta’s average by 2018;
  • Capex – the KFR stores are built to high standards and relatively new, so capex costs to rebrand the stores and adapt to Lenta requirements are not expected to be material. In the short term, Lenta will optimize capacity at the existing owned and rented distribution centres in St. Petersburg without significant additional supply chain related capex. In the medium term, some additional supply chain capacity is likely to be added in St. Petersburg to support continued growth in both hypermarkets and supermarkets – options on how best to achieve this are being evaluated. The Company’s new 2016 capex guidance is Rub 55-60bn, including the investment in the acquisition of the KFR stores;
  • Acquisition of KFR will not affect Lenta’s credit rating and was considered as credit positive by Moody’s and Fitch Rating Agencies.

Guidance related to Lenta new store openings

  • New hypermarket opening guidance – the acquisition will be additional to Lenta’s prior guidance of at least 40 new hypermarkets in 2016. Lenta therefore plans to open at least 50 hypermarkets in 2016, inclusive of the acquired KFR stores. If the number of store openings in 2016 significantly exceeds this new guidance, the Company may adjust the pipeline for 2017 while still delivering a total of at least 90 hypermarket openings in 2016-2017;
  • New supermarket opening guidance – the acquisition does not affect prior supermarket opening guidance.

About Lenta
Lenta is the largest hypermarket chain in Russia (in terms of selling space) and the country’s fifth largest retail chain (in terms of 2015 sales). The Company was founded in 1993 in St. Petersburg. Lenta operates 169 hypermarkets in 76 cities across Russia and 43 supermarkets in Moscow and St. Petersburg, with a total of approximately 1,043,894 sq.m of selling space. The average Lenta hypermarket store has selling space of approximately 5,900 sq.m. The average Lenta supermarket store has selling space of approximately 1,000 sq.m. The Company operates six owned hypermarket distribution centres.

The Company’s price-led hypermarket formats are differentiated in terms of their promotion and pricing strategies as well as their local product assortment. The Company employed approximately 34,134 people as of 30 June 20161.

The Company’s management team combines a mix of local knowledge and international expertise coupled with extensive operational experience in Russia. Lenta’s largest shareholders include TPG Capital and the European Bank for Reconstruction and Development, both of which are committed to maintaining high standards of corporate governance. Lenta is listed on the London Stock Exchange and on the Moscow Exchange and trades under the ticker: ‘LNTA’.

A brief video summary on Lenta’s business and its Big Data initiative can be seen here.

For further information please visit www.lentainvestor.com, or contact:

Anna Meleshina,
Public Relations & Government Affairs Director
Tel: +7 812 363 28 53
E-mail: anna.meleshina@lenta.com

Anastasia Kuznetsova,
Corporate Communications Manager
Тel:+7 (812) 336 39 97
E-mail: a.kuznetsova@lenta.com

International Media:
David Westover and Marina Zakharova
Тel: +44 207 282 2886
E-mail: lentateam@citigatedr.co.uk

FTI Consulting
Russian Media:
Anton Karpov & Victoria Afonina
Тel:+7 495 795 06 23
E-mail: lenta@FTIconsulting.com

Source: Lenta

Walgreens Boots Alliance to purchase AmerisourceBergen common stock by exercising 2nd tranche of warrants

DEERFIELD, Ill., 2016-Aug-27 — /EPR Retail News/ — Walgreens Boots Alliance, Inc. (Nasdaq: WBA) today (25 August 2016) announced that it had agreed with AmerisourceBergen Corporation (NYSE: ABC) to amend the second tranche of warrants held by Walgreens Boots Alliance to purchase AmerisourceBergen common stock, so as to permit the immediate exercise of these warrants. The warrants were originally scheduled to be exercisable in March 2017.

Walgreens Boots Alliance then exercised these warrants and purchased 22,696,912 shares of AmerisourceBergen common stock for an aggregate payment of approximately $1.19 billion. The transaction was funded using existing cash on hand.

“Today’s announcement builds on the strong and collaborative working relationship our companies have built together, and further strengthens the long-term strategic relationship we launched in 2013,” said Executive Vice Chairman and CEO Stefano Pessina. “Since the beginning of the strategic relationship, we have worked together with AmerisourceBergen to improve the customer experience by delivering the right products at the right time to ensure that we are able to provide exceptional patient access and care in our U.S. pharmacy operations.”

With today’s exercise of these warrants, Walgreens Boots Alliance now beneficially owns 56,854,867 shares of AmerisourceBergen common stock, or 23.9 percent of AmerisourceBergen’s outstanding equity (based on shares outstanding as of 31 July 2016, adjusted to give effect to the exercise of these warrants).

Walgreens Boots Alliance intends to continue to account for its investment in AmerisourceBergen using the equity method of accounting, subject to a two-month lag, with the net earnings attributable to its investment being classified within the operating income of the company’s Pharmaceutical Wholesale segment.

Notes to Editors:

About Walgreens Boots Alliance

Walgreens Boots Alliance (Nasdaq: WBA) is the first global pharmacy-led, health and wellbeing enterprise.

The company was created through the combination of Walgreens and Alliance Boots in December 2014, bringing together two leading companies with iconic brands, complementary geographic footprints, shared values and a heritage of trusted health care services through pharmaceutical wholesaling and community pharmacy care, dating back more than 100 years.

Walgreens Boots Alliance is the largest retail pharmacy, health and daily living destination in the USA and Europe and, together with its equity method investments*, employs more than 370,000* people and has a presence in more than 25* countries. Walgreens Boots Alliance is a global leader in pharmacy-led, health and wellbeing retail with over 13,100* stores in 11* countries. The company includes one of the largest global pharmaceutical wholesale and distribution networks with over 350* distribution centers delivering to more than 200,000** pharmacies, doctors, health centers and hospitals each year in 19* countries. In addition, Walgreens Boots Alliance is one of the world’s largest purchasers of prescription drugs and many other health and wellbeing products.

The company’s portfolio of retail and business brands includes Walgreens, Duane Reade, Boots and Alliance Healthcare, as well as increasingly global health and beauty product brands, such as No7, Botanics, Liz Earle and Soap & Glory.

* As at 31 August 2015 (without subsequent adjustment for business acquisitions or dispositions), including equity method investments

** For 12 months ended 31 August 2015 (without subsequent adjustment for business acquisitions or dispositions), including equity method investments

Cautionary Note Regarding Forward-Looking Statements: All statements in this release that are not historical are forward-looking statements made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. These forward-looking statements are not guarantees of future performance and involve risks, assumptions and uncertainties, including those described in Item 1A (Risk Factors) of our Form 10-K for the fiscal year ending 31 August 2015 and our Form 10-Q for the fiscal quarter ended 31 May 2016, which are incorporated herein by reference, and in other documents that we file or furnish with the Securities and Exchange Commission. Should one or more of these risks or uncertainties materialize, or should underlying assumptions prove incorrect, actual results may vary materially. These forward-looking statements speak only as of the date they are made. Except to the extent required by law, we do not undertake, and expressly disclaim, any duty or obligation to update publicly any forward-looking statement after the date of this release, whether as a result of new information, future events, changes in assumptions or otherwise.


Media Relations:
Michael Polzin
+1 847 315 2920

Laura Vergani
+44 (0)207 980 8585

Investor Relations:
Gerald Gradwell and Ashish Kohli
+1 847 315 2922

Source: Walgreens Boots Alliance, Inc.

Motor Fuel Group to purchase the Bolton-based forecourt operator, Synergie Holdings Limited

Hertfordshire, England, 2016-Aug-04 — /EPR Retail News/ — Top 50 Indies forecourt operator, Motor Fuel Group (MFG) announces that it has signed an agreement to purchase the Bolton-based forecourt operator, Synergie Holdings Limited.

The transaction is scheduled to close early September, 2016.

Commenting on the agreement, Jeremy Clarke, chief operating officer at MFG said: “We are delighted with this exciting transaction. The signing of this agreement supports our stated objective to become the UK’s most dynamic and profitable independent forecourt operator.”

Synergie has a network of 19 forecourts situated throughout the north-west of England, many of them offering strong convenience and ‘food to go’ offers.

This acquisition will bring the total number of stations that will be owned by MFG to 395, making MFG the second largest independent forecourt operator in the UK.

Jeremy Clarke continued: “This acquisition is just a part of our exciting 2016 programme. We are already well into an extensive shop rebranding programme following the signing of a new shop supply agreement with Booker Retail Partners and are also embarking on a significant development programme increasing retail space and introducing new ‘food to go’ offers at key locations throughout our forecourt estate.”


Phone:+44 (0) 1727 898 890
Fax:+44 (0) 1727 852 318

Source: Motor Fuel Group

Sports Direct announces purchase of 234,052 of its ordinary shares from Citigroup Global Markets Limited on 02 August 2016

Shirebrook, UK, 2016-Aug-04 — /EPR Retail News/ — Sports Direct announces that on 02 August 2016 it purchased 234,052 of its ordinary shares from Citigroup Global Markets Limited (acting as the Company’s broker) at a price of 281.8 pence per share. The purchased shares will all be held as treasury shares.

Following the above purchase, the Company holds 43,152,267 ordinary shares as treasury shares. The total number of ordinary shares in issue (excluding shares held as treasury shares) is 597,450,102.


Dave Forsey, Chief Executive

Matt Pearson, Acting Chief Financial Officer

T. 0344 245 9200


Keith Bishop
T. 0344 245 9200

Source: Sports Direct International plc

7‑Eleven is giving away 1 million 7-Select® Single-Serve Chips with purchase of any 7-Select bottled beverage

Dallas, 2016-Aug-04 — /EPR Retail News/ — 7‑Eleven, Inc. is giving away 1 million single-serve bags of 7-Select® private brand chips through Sunday, Aug. 7

7Rewards® members can purchase any 7-Select bottled beverage and scan the 7‑Eleven mobile app to receive a FREE 2.25 oz. or 2.5 oz. bag of 7-Select chips at participating 7‑Eleven stores, while supplies last.

To participate in the One Million Chip Free-For-All customers must be a registered 7Rewards member and use 7‑Eleven’s mobile app, available in the Apple App Store or Google Play. The member’s unique, scannable barcode and digital punch card are located on the app’s home screen for easier use.

7-Select chips come in a variety of flavor-forward combinations. Try some of the new flavors like Smoked Gouda Kettle, Sundried Tomato Kettle, Sriracha Kettle, Hot Italian Sausage, Wasabi Soy, Prime Rib and Spicy Guacamole.

Featured 7-Select beverages eligible in the “One Million Chip Free-For-All” include all 7-Select bottled water including cases, plus sweet and unsweet take-home iced teas, 7-Select Go!Smart™ coconut water, 7-Select juices and new premium beverages like:

7-Select PURE Water – 7‑Eleven’s private brand premium water with added electrolytes and minerals is pure, great tasting, refreshing and hydrating.

7-Select GO!Smart Organic Teas – These delicious teas are brewed with premium ingredients including organic tea leaves and sugar. They are available in a range of caffeine levels to make the drink the perfect better-for-you option. 7-Select sweet and unsweet iced teas are also eligible for the chip giveaway.

7-Select Premium Sodas Crafted by Jones Soda Co. – This unique beverage line brings new, energizing and refreshing craft sodas to 7‑Eleven. Sweetened with real cane sugar, the craft sodas are available in five bold flavors : Bluesberry Smash, CocoLocoLiliNut, Twisted Citrus, Tropical Slam Rambutan and Fruit Loose.

For more information on 7‑Eleven’s 7-Select® chips and premium beverage line, including where to find and purchase these products throughout the country, visit https://www.7‑Eleven.com/.

About 7‑Eleven, Inc.
7‑Eleven, Inc. is the premier name and largest chain in the convenience retailing industry. Based in Irving, Texas, 7‑Eleven® operates, franchises and licenses approximately 59,800 7‑Eleven stores in 17 countries, including 10,700 in North America. Known for iconic brands such as Slurpee®, Big Bite® and Big Gulp®, 7‑Eleven has expanded into high-quality salads, side dishes, cut fruit and protein boxes, as well as its popular pizza, chicken wings, cheeseburgers and hot chicken sandwiches. 7‑Eleven offers customers industry-leading private brand products under the 7-Select brand including healthy options, decadent treats and everyday favorites at an outstanding value. Customers also count on 7‑Eleven for bill payments, self-service lockers and other convenient services. Find out more online at www.7‑Eleven.com, via the 7Rewards customer loyalty platform on the 7‑Eleven mobile app, or on social media at FacebookTwitter and Instagram.

For more information, please contact:
7‑Eleven, Inc. Corporate Communications

SOURCE: 7‑Eleven

Publix Super Markets to purchase 10 Virginia stores from Ahold USA Inc.’s affiliate, GIANT/MARTIN’S

LAKELAND, Fla., 2016-Jul-18 — /EPR Retail News/ — Today Publix Super Markets Inc. announced it has entered into an agreement to purchase 10 Virginia stores from Ahold USA Inc.’s affiliate, GIANT/MARTIN’S. The purchase is contingent on the Federal Trade Commission’s approval and clearance of the merger between Ahold and Delhaize Group.

The locations include:

Address City
3107 Boulevard Colonial Heights
9645 West Broad Street Glen Allen
10150 Brook Road Glen Allen
10250 Staples Mill Road Glen Allen
2250 John Rolfe Parkway Henrico
3460 Pump Road Henrico
13700 Hull Street Road Midlothian
3522 West Cary Street Richmond
4591 South Laburnum Avenue Richmond
7035 Three Chopt Road Richmond

Publix CEO & President Todd Jones commented on the purchase, “Acquiring these 10 locations aligns with Publix’s aggressive growth plan for the commonwealth of Virginia. We are looking forward to providing Virginians with the high-quality service and products our customers have come to expect and have earned us recognition throughout the industry.”

The 10 MARTIN’s locations will continue to operate until the Publix permitting process is completed. Grand opening dates for all locations will depend on the scope of the remodels and completion of the stores’ construction.

Publix will hold job fairs closer to grand opening dates and encourages impacted MARTIN’S employees to apply for employment.


Source: Publix Super Markets Inc.

The 10 year anniversary of the Tesco Baby & Toddler Clubis marked by the launch of a new online service

For the last 10 years, the phenomenally successful Tesco Baby & Toddler Club has helped over 1m parents throughout the UK by providing them with support at just the time they need it most. Now, to mark its 10th birthday, the Club has launched a compelling new set of member benefits and a fantastic new website.

Celebrating a new arrival – Baby & Toddler Club online in keeping with the Tesco ‘Every Little Helps’ philosophy, and in direct response to the 98% of Baby & Toddler Club members who asked Tesco for support through an online service.

“Our members told us that while they really valued the information we gave them through the Club magazines, they wanted an online offering as well. This allows us to provide support when parents need it most – even if that is at 3am with a screaming baby“, says Jenna Copeland, Tesco Baby & Toddler Club Manager.

“Our new website means that mums can instantly access the information they need and, if they need further reassurance, can contact other mums in our Chat Room. This new initiative is just part of the commitment is putting behind providing our customers with the very best in online services and we know it is something that will be welcomed not only by our members, but by parents throughout the UK.” Tesco

The Baby & Toddler Club online will offer a wealth of information at parents’ fingertips, as well as being a genuine 24/7 club where mums can make new friends online, share experiences and offer each other support. Other features include:

– ‘You and Your Baby’ – a comprehensive guide to all the ups and downs of pregnancy and the first 3 years of parenthood & childhood.

– Recipes– recipes for pregnant women, babies & toddlers.

– Baby Diaries – true life diaries of a pregnant mum, a new mum and a dad of two toddlers.

– Ask an expert – FAQ on topics from nutrition and development to child psychology and relationships. An opportunity to post a question to be answered by one of 10 Baby & Toddler Club experts.

– Baby forums – customers who register their interest for the baby forum will be automatically entered into a prize draw to win a year’s supply of nappies.

– About the Club – an opportunity for parents to join the Tesco Baby & Toddler Club online, including the latest Mums’ Choice information and winning products, a guide to what’s on in store.

A bonanza of fantastic benefits for club members

The new website isn’t the only exciting new development. New Club members will be able to gain up to 10,000 Tesco Clubcard Points (over the lifetime of their membership) by redeeming Points Coupons in their club mailings, as well as receiving a free parking permit that allows them to park in ‘Parent and Child’ spaces closest to the store. And the Club’s new Welcome Brochure is packed with other exclusive special offers:

Customers shopping with Tesco Direct save 10% off any purchase for their baby through Tesco Direct. This service is particularly useful for large items such as cots, buggies, high chairs, car seats and bathroom accessories and everything is delivered straight to the customer’s door. There are over 8,000 new products available, with more than 1,000 especially for babies and toddlers.

RAC discount: There’s nothing more important when traveling with a little one than feeling safe in the knowledge that your car is in tip-top condition – but it can be expensive. That’s why Tesco has teamed up with RAC to offer a 20% discount over the lifetime of the membership, plus a £30 Tesco gift card.

Free Huggies Baby Beginnings Basket: For that little something extra, when new members buy a pack of Huggies Newborn Size 1 nappies in Tesco stores, they can redeem a basket of goodies, including wipes, powder, tissues, Baby’s First record book, money-saving coupons, a Huggies teddy bear and a muslin cloth.

Tesco Baby & Toddler Club is the longest running retailer Club for pregnant women and parents of children under the age of three. Over 320,000 members are proof of its popularity – and this number is increasing daily as more expectant mums and new parents join Baby & Toddler Club. Absolutely free to join, members receive tailored magazines every 3-6 months packed full of relevant, useful information and provide the ultimate helping hand when they need it most. This will also help family finances as each magazine comes with Points Coupons on many baby essentials and treats for members!

Via EPR Network
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