ROMANIA: Profi almost doubled its profit in 2015 | Progresiv

Profi retail chain, owned by Polish investment fund Enterprise Investors, ended 2015 with a turnover of over 570 million, about 40% more than in the previous fiscal year, according to data reported to the Ministry of Finance. The retailers reported better performance also in terms of profit, which was almost 12 million euros versus 6.1 million euros in 2014.

The reported figures represent a very good basis for a possible negotiation in a sales process, but can also be a good enough enough reason to continue development, given that the chain’s owner announced its plans to evaluate strategic options available for the future. They contracted Citi Corporate and Investment Banking to assess market conditions and possible scenarios.

Contacted by Progresiv magazine, Enterprise Investors representatives nor denied, nor confirmed the sale option. "There was no decision regarding Profi. Since the acquisition, the company has grown at a rapid pace and we believe it is a good time to explore all strategic options for Profi and seek both a financing structure optimal to support an ambitious future growth", they said.

If they opt for selling operations, the transaction would be the second big move on the local food retail that could have the potential to materialize this year after that of Carrefour and Billa, currently on the discussion list of the Competition Council.

On the other hand, it would be neither the first time Profi would seek funding outside its own resources. In March this year the retailer received an infusion of nearly 40 million euros for expansion from the European Bank for Reconstruction and Development (EBRD) and Raiffeisen Bank.

Enterprise Investors is one of the largest private equity firms in Central and Eastern Europe. Active since 1990, the company has raised eight funds with total capital exceeding 2 billion euros. These funds have invested 1.7 billion euros in 136 companies in a wide range of sectors and sold 112 companies realizing gross proceeds of 2.3 billion euros.