BENETTON BUYS EUROMARKET FROM STANDA
Byline: Sara Gay Forden
MILAN — The Benetton Group has concluded the acquisition of the Euromarket hypermarket chain from Silvio Berlusconi’s Standa group, Standa said late Thursday.
The acquisition makes Benetton Italy’s third-largest mass retailer, after Fiat’s Rinascente SpA and the COOP cooperative.
The deal, which was expected, was made through a parity joint venture between the Benetton family investment company Edizione Holding SpA and Leonardo Del Vecchio, chairman of designer eyewear producer Luxottica SpA.
The Benetton group was already in partnership with Del Vecchio in the acquisition last month of the GS supermarket chain and the Autogrill highway snackbar network.
Although financial terms of the deal weren’t disclosed, analysts placed the value of the Euromercato assets, which include five hypermarkets and seven commercial licenses, at about $599 million (971 billion lire).
The purchase price is believed to be between $370 million (600 billion lire) and $524 million (850 billion lire), according to industry sources.
As a result of the acquisition, the Benetton Group becomes one of the largest and most dynamic players on the national retail scene. — Fairchild News Service