Eurocash to develop cosmetics retail business

2011-12-29



Eurocash will develop the cosmetics retail business that it recently took over from Emperia Holding along with Tradis, according to Eurocash CEO Luis Amaral. Eurocash has not had operations in that segment up to now, but considers it to be very promising, Mr Amaral said.
Among the assets acquired by Eurocash from Emperia are about 80 Drogerie Koliber cosmetics retail stores and Ambra, a cosmetics products distributor that supplies the Koliber chain, among others.
Eurocash recently reached an agreement with Emperia to acquire the latter’s distribution branch Tradis for about PLN 1.1bn (€250.3m). See the news brief “Eurocash buys Tradis from Emperia” for more information. Eurocash took out a PLN 470m (€106.9m) loan for the deal and wants to pay it off by the end of September 2012 with cash flow and the sale of real estate.
The transaction makes Eurocash the second largest grocery product distributor on the Polish market with a 17% share. According to Mr Amaral, the group wants to double the scale of its business within four-six years and challenge Jeronimo Martins for the top spot.
The Office of Competition and Consumer Protection (UOKiK) approved the merger in October 2011 under the condition that Eurocash sells 12 wholesale warehouses within one year.