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In December 2009 X5 completed the acquisition of
Paterson supermarket chain for USD 189.5 million
plus assumption of USD 85 million in net debt.
Paterson is an excellent fit and offers attractive
value for X5’s shareholders. It reinforces X5’s
number one position in supermarkets. It provides
high quality locations in key geographic markets
with strong demographics for this format.
Paterson operated stores in Moscow, Moscow
region, St. Petersburg, Kazan and other cities
of European Russia and Urals, with 2009 net
retail sales of RUR 10,415 mln or USD 328 mln. |
X5 expects to realise significant synergies from
the rebranding and operational integration of
Paterson stores, with strong upside potential
in sales density, profitability and cash flow
generation.
Based on current assumptions, X5 plans to
integrate 57 Paterson stores as supermarkets
under the Pererkrestok brand, and 25 smaller
stores as soft discounters under the Pyaterochka
brand. A few stores are under review with regard
to X5’s financial criteria. We expect to finalise
the integration by mid-2010. |
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