[ EXCLU ] In the details of the financing of the Casino operation by Intermarché…

By adding the price of the transaction and the directly related expenses, the purchase of 294 Casino stores will have cost the Mousquetaires more than 2 billion euros. Not to mention what the purchasing members will have to inject out of their own pockets for the renovations. An operation largely financed by debt. Information from VIGIE GRANDE CONSO*.

This summer, Société Les Mousquetaires (SLM) issued €300 million on the public bond market. A rarity in the world of independents. This five-year loan, at 5.75% interest, is at the bottom of the range targeted by the group's central structure (€500 million was hoped for). But it was welcome to give some breathing room to the distributor, which has already started to repay a much larger debt: 1.1 billion euros borrowed last February to finance the buyout of 164 Casino stores.

Including the other two “waves”, Les Mousquetaires have acquired a total of 294 Casino points of sale. Who were paid €1.35 billion in cash. The Stéphanois, short of cash, had even obtained in September 2023, at the time of the sale of the first stores, the payment in advance of 49% of a wave to follow.

With the additional expenses incurred as the Casinos take over, the SLM will ultimately have spent more than €2 billion.Never seen before in the history of independents, motivated by the achievement of a historic growth operation.

Now it remains to find the members who will buy all these stores.The Les Mousquetaires Company knows that the ports will last a long time, longer than the usual six months following an acquisition. As of July 1, 198 sites were “pre-allocated” to a member (out of a total of 294). But this method of allocation does not amount to a firm commitment. Scalded by the decision of the Competition Authority which, in January, had imposed the transfer of 3 Intermarché already bought by members, Les Mousquetaires are now waiting for the final arbitrations before proceeding with any transfer.

This also gives future buyers time to judge on the real value of the old Casinos, and their capacity to take off again.The first 61 sites, converted in October 2023, have since seen their turnover increase by 7% on average (with prices down 15%).

These results should improve when stores are truly put to the Intermarché or Netto concept. Which will require further new investments, of at least €1,100/m2 for hyper-supers (i.e. a good billion more).The group has already promised financial assistance to future owners, which could go up to €550/m2. In addition, for 5 years, a special support budget intended for the sites most in difficulty. In short, generous conditions so as not to be stuck with stores on your hands.

* VIGIE GRANDE CONSO is the benchmark retail watch that we have published every month for 15 years. Our ambition? The highest level of retail analysis and studies guaranteed to be 100% new.

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