Carrefour Acquires Wellcome Taiwan for 108.5 Million USD, Adds Fresh Produce Boost
MASSY, FRANCE - Global challenges do not necessarily mean a halt in global growth for some—just ask Carrefour. The retail giant has entered into an agreement with Dairy Farm to acquire Wellcome Taiwan, a transaction that involves 224 proximity stores in quality locations. The transaction’s enterprise value is 97 million euros (approximately $108.5M USD).
To put this acquisition in a context of success, Wellcome Taiwan posted net sales of around 390 million euros ($435.79 million USD) in 2019, according to a press release. This footprint breakdown welcomes 199 Wellcome formats and 25 Jasons formats as well as a warehouse. This includes ownership of the warehouse’s real estate and land.
In addition, Wellcome will bring its recognized expertise in fresh produce and will contribute to the development of food e-commerce, with each store becoming a new pick-up point for e-commerce orders.
Carrefour has plans to convert the Wellcome stores to the Market banner within 12 months after the closing of the transaction. Jasons stores will be converted to a Carrefour premium banner. The converted stores will benefit from Carrefour’s commercial policy and purchasing conditions.
Carried out under attractive conditions, the acquisition allows Carrefour to accelerate its development in Taiwan in the area of fast-growing proximity formats, making Carrefour the local number 2 group in this sector. This move allows Carrefour to consolidate its position as the multi-format food retail titan in that market. In addition, by combining these businesses, customers and team members will benefit from the group’s greater presence and wide-ranging scale.
The transaction is subject to customary conditions and is expected to close by the end of 2020. A huge congrats to Carrefour on this recent growth on the international stage!