FreshPlaza:
The X5 Retail Group has completed its buy-out of the company that operates the Pyaterochka chain in the cities of Yekaterinburg and Chelyabinsk. The group has acquired the 25% stake in the venture it did not already own, giving it full control of the chain.
The venture was set up in April 2007 with the franchisee, but X5 Retail has decided to consolidate its stores to achieve stronger results through synergies. The deal was worth 576m rubles ($18m), and the price was determined on the basis of the Urals-based company’s 2008 sales performance.
The Pyaterochka chain operates 103 stores in the Urals region, and generated revenue for 6.8bn rubles ($272m) in 2008.