ROMANIA: EBRD enters Profi’s ownership with a 25 million euros investment | Progresiv

Mid Europa Partners, the new owner of retailer Profi, received 25 million euros as capital investment from the European Bank for Reconstruction and Development (EBRD) to expand the store chain, especially in small towns.

Thus, the EBRD becomes minority shareholder alongside investment fund managed by Mid Europa Partners, after it financed the expansion of the supermarket chain and having already invested their own money three years ago in the new Profi shareholder.

This new funding comes as a continuation of an EBRD loan worth 25 million euros, for supporting the company's growth by increasing competitiveness.

Profi currently operates 523 stores in 272 cities in the country. The retailer was taken over by the investment fund Mid Europa Partners in November last year from Polish Enterprise Fund VI, a private equity fund managed by Enterprise Investors, for 533 million euros.

This was the largest transaction ever made by a private equity fund in Romania and the largest transaction in the local retail industry after the takeover of 20 Real stores by France's Auchan, in a transaction worth over 250 million euros.

Profi concluded the financial year 2016 with a turnover of over 3.5 billion lei. This year the company aims to reach the 1 billion euros threshold. Also regarding expansion, the retailer has set an ambitious target, given the plan to launch 200 new stores. Since the beginning of the year until this moment Profi opened 22 business units, being the most expansive retailer locally.