The transaction between Carrefour hand Dairy Farm involves 224 proximity stores in quality locations (199 Wellcome – average sales area of 420 sq.m – and 25 Jasons – average sales area of 820 sq. m) as well as a warehouse (including ownership of the real estate and land).
The transaction’s enterprise value is 97 million euros. Wellcome Taiwan posted net sales of around 390 million euros in 2019.
This acquisition allows Carrefour to accelerate its development in Taiwan in the fast-growing proximity format. Carrefour will thus become the local number 2 in this format.
Carrefour currently operates 137 stores in Taiwan, including 69 proximity stores under the Market banner. The Group posted net sales in the country of 1,968 million euros, EBITDA of 209 million euros and recurring operating income of 83 million euros in 2019.
Wellcome will become Carrefour Market
Carrefour plans to convert the Wellcome stores to the Market banner within 12 months after the closing of the transaction, and then convert Jasons stores to a Carrefour premium banner.
The converted stores will benefit from Carrefour’s commercial policy and purchasing conditions. The Group plans to improve commercial density and optimize the cost structure.