Les Mousquetaires and Casino Group Finalize Sale of 61 Stores and Expand Partnership
Groupement Les Mousquetaires and Casino Group have successfully concluded the sale of an initial batch of 61 stores and have extended their collaborative efforts to encompass purchasing and supply. This development follows the memorandum of understanding signed on May 26, 2023. Here are the key aspects of their agreement:
- Sale of 61 Casino France outlets, including hypermarkets, supermarkets, Franprix, and convenience stores. These outlets collectively generated €563 million in sales (excluding VAT) in 2022, with a total enterprise value of €209 million, inclusive of service stations.
- Extension of their purchasing alliance, which will now include private-label food products under the name “AUXO Private Label.” This collaboration is set to launch a new round of tenders. Furthermore, the terms of the three existing AUXO purchasing alliances have been extended by two years, now running until 2028.
- Signing of a supply agreement between Groupement Les Mousquetaires and Casino Group, specifically involving Groupement Les Mousquetaires’ Seafood and Meat sectors. This agreement leverages the expertise of Agromousquetaires.
These transactions were finalized in Paris on September 30, 2023. Casino Group has received the transfer price, and Groupement Les Mousquetaires has assumed ownership of 58 out of the 61 stores that were sold. The stores will be rebranded under the Intermarché or Netto banners after necessary conversion work, with the change set to take effect in October.
Additionally, as per the agreements inked in May 2023, Casino Group has granted Groupement Les Mousquetaires a call option for a second batch of outlets, amounting to €510 million in sales (excluding VAT). Groupement Les Mousquetaires acquired a 49% non-controlling stake in these outlets and paid an initial lump-sum of €140 million to Casino on September 30, 2023. This payment will be deducted from the final price, calculated based on the market value of the assets.
Conversely, Groupement Les Mousquetaires has granted Casino Group a put option for an additional set of stores, representing €437 million in sales (excluding VAT). This option can be exercised over a three-year period, with Groupement Les Mousquetaires making an initial lump-sum payment to Casino upon exercising this option, which will also be deducted from the final price based on the market value of the assets.
Both parties have ensured compliance with competition law and have consulted their respective employee representative bodies throughout this process.