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The Polish company CDRL will acquire 90 shares of the Belarussian trade and industry group West Ost Union, which owns a network of children's stores, Buslic. This follows from the message posted on the website of the Warsaw Stock Exchange.
The CDRL, in negotiations with sellers – the European Bank for Reconstruction and Development and four people – agreed on the essential conditions to acquire 90% of West Ost Union. The total value of the transaction is estimated at $ 6.39 million. The amount will be paid on the basis of the sales contract after approval of the transaction by the Ministry of Antimonopoly Regulations and Belarus, the report said.
The CDRL plans to finance the transaction from its own funds or from external sources of financing, including by issuing bonds for 40 million zlotys. The purchase of a Belarusian retailer is expected to increase sales of a Polish company in foreign markets, the report says.
The owner of the remaining 10% is the founder and current CEO of West Ost Union. Sergey Mysyachenko. He will continue to run the company. "I think the brand Buslic will continue," Mysyachenko told TUT.BY, but declined any comments until the transaction.
Founded in the 1990s, CDRL designs, manufactures and distributes children's clothing and shoes. The company owns the Coccodrillo brand. In Belarus, the CDRL worked very closely with the West Ost Union. Many Coccodrillo clothes are sold in "Buslic". Last year, several Polish brand stores opened their doors. Now, all products are sold via Busliki, resulting from the declaration of the CDRL for the 3rd quarter of 2018.
At present, Coccodrillo has more than 300 different format stores in Poland and in other countries, whether they are owners or franchisees.
Buslіk has 46 stores, 17 of which are located in Minsk. All supermarkets are located in rented premises. Mysyashenko estimated the share of "Buslic" on the Belarusian market at 10-15%. "We are the only major player in the country in the supermarket format with a full range of children's products," said one manager.
West Ost Union's annual business is over $ 65 million and EBITDA over $ 2 million.
In 2009, a Belarussian retailer attracted a partner in the person of the European Bank for Reconstruction and Development, which bought 25.5% of the West West Union group of companies for $ 3 million. The bank has been looking for a strategic investor for Buslic for several years. At one time, the Russian "World of Children" was qualified as the most realistic candidate.
In May this year, information about a possible merger took place. But both members have disavowed it.
As a result, Detsky Mir announced its arrival in Belarus through a subsidiary. During the first half of 2019, the Russian retailer intends to open the first stores in Minsk and in other major cities.
On November 28, Vedomosti and Kommersant announced that the Safmar group of Russian billionaire Mikhail Gutseriev could buy the majority stake in Detsky Mir from AFK Sistema.
Currently, Safmar is the leading player in the Russian retail electronics and home appliances market. The company owns the M.Video-Eldorado group which, on June 30, had 838 stores under two brands. At the end of August, Mr.Video-Eldorado also received 42 Russian MediaMarkt stores under a contract to acquire MediaMarktSaturn's stake in Germany in the amount of 15% of the Mr.Video PJSC's capital, for an amount of $ 470 million.
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