Eurocash on 21 August announced that it has entered into a non-binding letter of intent for the acquisition of the supermarket chain Mila. The LOI outlines the potential purchase by Eurocash of 100% of shares in Cyprus-based Domelius Limited and its subsidiaries Mila Holding, Mila, Investpol 700 Mila and Koja-Mila. It grants Eurocash exclusivity to negotiate a purchase agreement by 8 September 2017.
The parties have already reached preliminary agreement regarding the key terms of the transaction, Eurocash said. The news was received very well by investors, sending Eurocash shares 6% higher in morning trade on 22 August.
At the end of 2016 Mila comprised 188 stores. The chain generated sales revenues of PLN 1.49bn (€348m) and earned an EBITDA of approximately PLN 4.8m (€1.1m) last year. According to Parkiet, Mila has the most stores in Kujawsko-Pomorskie, Mazowieckie, Lodzkie, Lubuskie, Wielkopolskie, Swietokrzyskie, and Slaskie.
Eurocash Group includes 14,000 franchise and owned grocery stores under banners such as Lewiatan, Eko, Delikatesy Centrum, abc, Euro Sklep, or Groszek.