Apollo Group Acquires 32 Stores from Casino Group for Nearly $530 Million
NEW YORK, NY - Last week, worldwide private equity company Apollo Group made waves in the supermarket world when it announced the $1.12 billion acquisition of Commerce, California-based Smart & Final. And this week, the company continued its acquisitive streak—purchasing 32 stores from French grocer Casino Group for nearly $530 million USD (€470 million).
As part of the agreement, Casino Group noted in a press release, Apollo will pay almost $420 million (€374 million) by the end of July 2019.
“Located primarily outside Paris, these 32 properties represent €26.6 million [or $29.8 million USD] in annual rent, including €14.2 million [or $15.9 million USD] from hypermarket assets and €12.4 million [or $13.9 million] from Monoprix and supermarket assets and offer an estimated yield of 5.3% including transfer costs,” Casino Group’s statement noted. “Nearly 80% of the value of the assets after deduction of registration fees, 374 million euros, are to be paid to the Casino Group at the closing of the proposed transaction, which is expected to occur by the end of July 2019. The proposed transaction is subject to the provision of financing, the terms of which have been agreed in principle.”
The Apollo Funds will, the company noted, create a “special purpose vehicle” in order to enhance the value of the acquisition—with the express design of “sell[ing the acquired assets] on the market under the best possible conditions.” Depending on the entity’s performance, the Casino Group could receive up to an additional $123.3 million (€110 million) in the next few years.
For more information, read Casino Group’s statement in its entirety here.