Retail giant Carrefour transfers ownership of its Italian supermarket branches to NewPrinces for a staggering €1 billion.
NewPrinces Acquires Carrefour Supermarkets in Italy for €1 Billion
NewPrinces, an Italian food multinational, has announced the purchase of around 1,000 retail outlets across Italy from Carrefour for approximately one billion euros. This acquisition is set to significantly impact NewPrinces' employment, turnover, and future strategy.
Boosting Turnover and Market Position
The acquisition boosts NewPrinces' potential turnover to around 11 billion euros, making it the second-largest Italian food sector group by turnover. Combined group revenues after the acquisition are expected to be about 6.9 billion euros initially, with an EBITDA of around 330 million euros.
Expanding Employment
The deal positions NewPrinces as the largest employer in the Italian food sector, with approximately 13,000 employees in Italy and over 18,000 worldwide, including about 11,000 in related industries.
Future Plans and Investments
NewPrinces aims to strengthen vertical integration between production and distribution to enhance value across the whole supply chain. The group plans significant investments of over 400 million euros in brand development and relaunch, potentially the historic Gs supermarket brand, which Carrefour replaced in 2010. This relaunch may include renaming Carrefour stores after about three years. The acquisition also includes €420 million in real estate assets, indicating substantial asset backing.
Addressing Worker Concerns
The transition has caused uncertainty among workers. Trade unions (Filcams CGIL, Fisascat Cisl, and Uiltucs) have declared a strike state due to employment uncertainties. They demand a meeting with the Ministry of Enterprise and Made in Italy to discuss recovery plans tied to the acquisition. The Italian Minister of Enterprise supports the operation, emphasizing its positive role in promoting "Made in Italy" products.
Financial Context
Carrefour Italia was reportedly running annual losses of about €180 million, and the sale enables Carrefour to exit Italy while leaving the subsidiary in a "good financial condition," per Carrefour leadership.
The deal is subject to regulatory approvals and is expected to close by the end of 2025.
Strengthening Business and Financial Standing
The acquisition by NewPrinces not only solidifies its position as the second-largest Italian food sector group by turnover, but also provides a financial boost by reducing Carrefour Italia's annual losses, estimated to be around €180 million.
Aligning Business Strategies in Finance
With the acquisition, NewPrinces plans to Invest heavily in brand development and relaunch, including potential change for the historic Gs supermarket brand, indicating a strategic shift towards strengthening its market position and financial standing in the food sector.
