Ceepackaging

Corporate

Eurocash becomes Poland’s largest FMGC wholesaler

The value of the deal was not disclosed, but it was revealed that part of the transaction will be financed by Eurocash stock to the value of USD 5mn (EUR 3.5mn).

McLane enjoyed a strong position in the tobacco and sweets distribution sectors, through its 300-outlet franchise network, IGA. The acquired company is also a leader in the so-called “impulse products” sold at gas stations registers and restaurants. According to Eurocash’s data, the company has a 6% market share in FMCG distribution in Poland , while McLane has 1.6%. The current market leader, Germany ’s Makro, has a 7.1% share. In tobacco goods alone, Eurocash and its aligned companies (KDWT) enjoy a 12% stake, and McLane, 3%. The Eurocash group comprises three companies - discount wholesale network Eurocash (running under the franchise ‘abc’), tobacco and impulse products distributor KDWT and Delikatesy Centrum (a franchise network in south-eastern Poland ).

In Jan-Sep, the group recorded net profit of PLN 39.3mn (EUR 10.4mn) and EBITDA of PLN 81.3mn (EUR 21.6mn) on sales revenue of PLN 3.5bn (EUR 930mn). The deal is still subject to approval from the anti-monopoly authority (UOKiK).