UK retailer Tesco has announced its acquisition of HIT, Poland’s largest food retailer.
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The deal includes 13 existing hypermarkets and two currently under construction. These will complement the 47 stores Tesco already operates in Poland, which generate some £390m (US$592m).
HIT generated sales of £337m last year from 13 hypermarkets and has net assets of £17m. However, it also has debts of £83m.
Poland is central Europe’s largest market and one on which Tesco has already lavished much attention. The deal to buy HIT virtually doubles its sales in the country. Tesco declined to disclose the price it has paid, but said that the cost, including the assumption of debt, was less than 2.5% of its market capitalisation of £410m (US$622m).
Thanks to an ambitious overseas expansion campaign, Tesco now generates nearly 10% of its profits outside the domestic UK market. The group plans to have nearly half of its sales space outside the UK next year, by expanding both in Europe and south-east Asia.
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By GlobalDataDeputy chairman David Reid commented: “Poland is a very competitive market and its an environment in which Tesco thrives,” he says.
For earlier news on Tesco’s activities in Poland, just-food.com members click here.
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