Apollo buys 32 supermarkets from The Casino Group for €484m

Nearly 80% of the value of the assets after deduction of registration fees, €374m, are to be paid to Casino at the closing of the proposed transaction, expected to occur by the end of July.

Depending on the supermarkets' performance, Casino could receive up to an additional €110m in the next few years.

The GP is currently investing via its Apollo Investment Fund IX, closed in 2017 on €24.6bn. The fund can invest up to 35% of total commitments outside the US and Canada. 

In March this year, the group announced it had completed its €1.5bn asset disposal plan in January 2019, and that the group raised its objective for the disposal of non-strategic assets in France to at least €2.5bn by Q1 2020.

Consolidated net profit came to a loss of -€54m in 2018, versus a profit of €101m in 2017. Income tax expense amounted to -€204m in 2018, up sharply from the prior year, due to non-recurring expenses that were not tax deductible in 2018, and a €60m benefit recorded in 2017, in relation to the reimbursement of the tax on dividends.

The deal includes 12 Géant Casino hypermarkets and 20 Monoprix and Casino supermarkets outside Paris. Located primarily outside Paris, these 32 properties represent €26.6m in annual rent, including €14.2m from the hypermarket assets and €12.4m from the Monoprix and supermarket assets; they offer an estimated yield of 5.3% including transfer costs.

Casino, with origins dating back 1898, generates sales of €36.6bn, posting a €1.86bn EBITDA.

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• Topics
• Real estate
• France
• Consumer
• France
• Apollo Management