ROMANIA: Profi owners weigh selling versus continue developing the chain | Progresiv
Polish Enterprise Fund VI (PEF VI), the private equity fund managed by Enterprise Investors, owner of Profi stors chain, announced that it plans to evaluate strategic options available for the future. Thus, the fund decided to contract 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 an optimal financing structure to support the same ambitious future growth", they said.
If they opt for selling the operations, the transaction would be the second largest move on the local food retail tha 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 wouldn’t be the first time Profi would seek funding outside its own resources. Even 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.
Profi is the modern retail chain with the largest geographical coverage in Romania. PEF VI acquired 100% of the company for 66 million euros in 2009 and in 2011 completed an additional investment of 10 million euros. Since the initial transaction, Profi has grown at a high pace, from 67 stores to currently over 400 stores, of which 93 stores were opened in 2015 alone.
The company operates stores in "Standard" and "City" formats in urban areas and recently developed "Loco" format for rural areas in the country. In 2015 the company reported revenues of over 565 million euros (2.54 billion lei) and today has nearly 10,000 employees.
In a recent interview, Daniel Cirstea, general director of the chain, announced investments of about 50 million euros and a similar number of openings - 100. On medium term, by 2020, the plans aimed at reaching the threshold of 1,000 stores.
Enterprise Investors is one of the largest private equity firms in Central and Eastern Europe. Active since 1990, the firm 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 have exited 112 companies realizing gross returns of 2.3 billion euros.
