DIA Retail Spain has signed a share purchase agreement for the sale to the Trinity Group of its subsidiary company, Beauty by DIA, known as Clarel. The Colombian Group Trinity Will Invest ABOUT 42.2 Million EUROS, Segulate has reported this Tuesday the company through a national compulsion of the V V. Alores Market (CNMV) and has indicated that this amount may vary depending on certain parameters.
Thus, DIA will receive a minimum of 11.5 million euros payable in 2024 for the operation and a maximum additional import of 15 million euros in 2029. In addition, it will receive a debt receivable of 18.7 million (15.7 million net of cash) payable in stages (4.2 million in 2024, 12.3 million in 2027 and 2.2 million in 2029), which would result in estimated maximum total funds of 42.2 million euros.
The agreement reached with Trinity includes, among other assets, approximately 1,000 Clarel stores distributed throughout the country and three distribution centers. DIA Retail will allocate the resources obtained from this sale to advance the consolidation of its growth, as reported to the CNMV.
In search of turning Clarel into a “beloved brand”
The Operation is SUBJECT to the Relevant Competition Authorization, and is expected to be completed in the first half of 2024. The CEO of Dia, M Artín Tolcachir, has highlighted that “In this new stage of consolidation of growth”, the group wants to focus “on what it does best: local food distribution.”
“We are determined to make Clarel one of the brands most loved by Spaniards, building on what has been built to date, and providing new growth opportunities for the brand and the business,” said the president of the Trinity group, Omar González.
What will be the accounting impact?
Following this operation, DIA calculates a negative accounting impact of 9.4 million euros in its consolidated income statement for 2023. For this sale, the supermarket chain has had the advice of Arcano Partners, Herbert Smith Freehills and Deloitte, while which Trinity group has been advised by DLA PIPER.
In August, DIA acknowledged that it was “actively” looking for a new buyer for Clarel’s more than 1,000 stores after having canceled the sale agreement with the C2 Private Capital fund worth 60 million euros.
The agreement with the investment fund “was dissolved” on July 31, after the conditions precedent to the agreement had not been met, as alleged by the supermarket chain at that time.
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