SPAR Poland had continued to grow its store numbers during 2021 with new stores and through the conversion of former Piotr i Paweł stores to the SPAR and EUROSPAR formats. Picture: Supplied
SPAR Group’s turnaround plans gathered pace with the conclusion of a sale agreement for the disposal of SPAR Poland to local Polish retailer Specjal for about R3 billion.
The sale of SPAR Poland was for 40 million Polish zloty (R185m), while SPAR would be required to recapitalise the business, which is estimated to cost PLN 586 446 288 (R2.7 billion), the majority of which would be achieved by SPAR settling the business’s funding debt, a statement said yesterday.
Specjal is a Polish retailer and wholesaler established in 1990 with a reputation for growth and innovation, a statement from Spar said yesterday.
The widely anticipated deal provides certainty for SPAR investors, removes loss-making business from the balance sheet and allows SPAR to focus resources into its core business in South Africa, as well as take advantage of new growth opportunities.
“This also gives clarity to our employees in Poland, who now have the potential to expand the business under the ownership of Specjal, a company with the requisite resources, scale, and capacity to take these assets to the next level,” SPAR Group CEO Angelo Swartz said.
SPAR’s Polish assets comprise some 200 retail stores, 3 distribution centres and 1 production facility.
“We are pleased to have been able to structure this sale in the agreed time frame and are ready to take our own business to the next level by focusing on our Southern African strengths as the heart of our business,” said Swartz.
SPAR operates in 11 countries, but its core South African business accounts for about 60% of group sales.
Swartz said the sale brought certainty for shareholders from a funding perspective. It created an opportunity for SPAR in Poland and the people employed there, as the purchaser was a well-known retailer and wholesaler with a strong track record.
“Specjal wants to scale the SPAR assets in Poland and has the resources to do so. Our journey into Poland is coming to an end. However, this deal further solidifies our renewed strategic intent. Our continued focus is on harnessing our strengths, driving efficiencies, profitability and excellence,” he said.
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