Carrefour purchases Wellcome Taiwan business at a price of 840 million yuan involving more than 220 supermarkets

Financial News

Written by: Lin Leqian

2020-06-02 20:30

Dairy International sells 100% of its Wellcome Taiwan subsidiary to French retail group Carrefour. According to Carrefour’s announcement, the transaction was conducted at an enterprise value of 97 million euros (approximately 839 million yuan), including 199 Wellcome supermarkets and 25 Jasons Market Place, and the assets and land of the logistics center.

Milk International also announced that it has reached an agreement with Carrefour. After obtaining regulatory approval, Carrefour will hold a 100% interest in Wellcome Taiwan. The transaction is expected to be completed in the second half of 2020.

Carrefour said that Wellcome Taiwan's turnover in 2019 is about 390 million euros (about 3.37 billion yuan). This merger will expand the scale of its business and accelerate its development of fast-growing supermarket showrooms in Taiwan. After the transaction is completed, the Group will change the Dinghao store to a convenience shopping brand in the next 12 months, and the Jason branch will be converted into a Carrefour premium supermarket.

Carrefour currently has 137 branches in Taiwan, including 69 convenience store supermarkets. Last year, its turnover in Taiwan reached 1.968 billion euros. The profit before tax, interest, depreciation and amortization (EBITDA) was about 200 million euros, and its operating profit was 8,300. Ten thousand euros.

Milk International stated that it believes that the transfer of business ownership will benefit future growth and development. Especially after Wellcome Taiwan successfully implemented a price adjustment strategy and strengthened customer loyalty, Wellcome has recorded strong turnover in the past 12 months.

Milk International's core profit increased by 5% last year

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Milk International Carrefour Wellcome