Acquisition of
Cora and Match
in France
Investor Call
July 1st, 2024
Key transaction parameters
Carrefour takes ownership of Cora and Match in France from Louis Delhaize
- 60 Cora hypermarkets (9,600 sqm average store size)
- 115 Match supermarkets (1,600 sqm average store size)
- Includes real estate ownership of 55 Cora and 77 Match
Acquisition completed, full clearance expected within 9 months
July 2023 | July 1st, 2024 | Q1 2025 |
Announcement of the | Waiver from the French antitrust | Full clearance expected |
acquisition | authority allowing to complete the | within 9 months. |
acquisition (final analysis on | Limited remedies anticipated | |
possible remedies pending) |
Deal terms
- €1.05bn Enterprise Value
- €130m estimated run-rate synergies after 3 years (vs €110m initially announced)
- €250m implementation costs (vs €200m initially announced)
Alongside, Carmila acquires 52 shopping malls, adjacent to Cora stores, from Louis Delhaize
ACQUISITION OF CORA/MATCH | July 1st, 2024 | 2 |
Strategic rationale
Carrefour consolidates its leading position in France
- Combined ~22% market share1
- Unique opportunity to consolidate leadership position with high quality assets
Ideal complementarity of the store footprint
- Cora and Match predominantly located in North and North-East of France, where Carrefour has limited presence
- Strengthening of Carrefour market share in the greater Paris area
New Carrefour market share
0.6%
1.7% +2.4%
19.6%
Strong historical bounds and common culture with Louis Delhaize group, facilitating integration
• 1969: First franchise agreement between Louis Delhaize group and Carrefour
• Joint purchasing alliance from 2014 to 2022
• Acquisition of Cora in Romania (10 hypermarkets + 8 convenience stores) in 2023
1 Market share for Carrefour Group including Cora + Match according to Kantar Worldpanel (52 weeks to P06 2024)
ACQUISITION OF CORA/MATCH | July 1st, 2024 | 3 |
Integration & conversion process
Plan to convert to Carrefour banner
- All Cora stores to be converted to Carrefour banner and concepts before year-end
- Price investments to match Carrefour's strategy and positioning
- Strengthening of FMCG and non-food product offering
Consolidation of the Match brand
- Strong local brand equity in the North-East of France
- Distinctive market positioning and "ready to (h)eat" offering
- Satisfactory store profitability
- Organic growth potential in the North East of France
Cora & Match stores to benefit from Carrefour's strategic pillars
- Rollout of Carrefour private labels in Cora and Match stores from Sept. 2024 onwards
- Rollout of financial and merchant services
- Full integration of Cora and Match stores in Carrefour's e-commerce offering (Drive, home delivery…)
- Cora and Match to benefit from and contribute to Carrefour's data and Retail Media operations
Carrefour to benefit from Cora and Match key operating skills, including:
- Strong expertise and reputation in fresh products
- Cora's unique recognition on promotions of large quantities
- Carrefour Market to benefit from Match expertise & best practice (e.g. "Place du Marché" concept)
ACQUISITION OF CORA/MATCH | July 1st, 2024 | 4 |
Expected synergies raised to €130m
€130m run-rate EBITDA synergies by 2027
Commercial performance (~50%)
- Align sales density to Carrefour levels
- Bring private label penetration closer to Carrefour's level (from ~20% today)
- Deploy Carrefour's financial and other services
Cost synergies (~50%)
- Purchasing gains on national brands and private labels
- Economies of scale on indirect spent, including marketing, advertising, etc.
Integration costs: €250m, mostly in 2024 & 2025
~€150m Opex | ~€100m Capex |
Transaction expected to be Adj. EPS accretive as of H2 2025
ACQUISITION OF CORA/MATCH | July 1st, 2024 | 5 |
APPENDIX
Strong geographical fit
Cora hypermarkets | Match supermarkets |
ACQUISITION OF CORA/MATCH | July 1st, 2024 | 7 |
Standalone contribution from acquired perimeter
Cora and Match standalone estimated KPIs (before synergies and integration costs)
H2 2024e | FY 2025e | |
Net sales | ~€2.6bn | ~€5.0bn |
Recurring Operating Income | ~€20m | ~€25m |
Recurring Capex | ~€35m | ~€70m |
Source: Carrefour estimates
ACQUISITION OF CORA/MATCH | July 1st, 2024 | 8 |
DISCLAIMER
This presentation contains both historical and forward-looking statements. These forward- looking statements are based on Carrefour management's current views and assumptions. Such statements are not guarantees of future performance of the Group. Actual results or performances may differ materially from those in such forward-looking statements as a result of a number of risks and uncertainties, including but not limited to the risks described in the documents filed with the Autorité des Marchés Financiers as part of the regulated information disclosure requirements and available on Carrefour's website (www.carrefour.com), and in particular the Universal Registration Document. These documents are also available in the English language on the company's website. Investors may obtain a copy of these documents from Carrefour free of charge. Carrefour does not assume any obligation to update or revise any of these forward-looking statements in the future.
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Carrefour SA published this content on 01 July 2024 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 01 July 2024 16:07:04 UTC.