In a significant move within the retail sector, Ardian, a prominent Paris-based private equity firm, is preparing to launch a new auction for Prosol Group, the operator of the Grand Frais supermarket chain. The sale is anticipated to be valued between €3 billion and €4 billion ($3.5 billion to $4.2 billion), reflecting an EBITDA of approximately €400 million. This transaction is notable as it involves US buyout firm Clayton, Dubilier & Rice (CD&R), which is considered a potential bidder alongside other interested parties.
Prosol Group, founded in 1992 by Denis Dumont, has established a robust presence in France with over 250 stores that emphasize fresh and locally sourced products. Dumont, who retains a stake in the company along with the management team, is expected to reinvest on a minority basis post-sale, suggesting confidence in Prosol’s ongoing growth potential.
For CD&R, acquiring Prosol would complement its existing European retail investments, which include ownership of Morrisons in the UK and control over the French home equipment retailer Mobilux. The firm has been active in the sector, having recently finalized its acquisition of Sanofi’s consumer health business, Opella. This strategic move into the food retail space aligns with CD&R’s focus on essential consumer services and products.
The auction process is anticipated to commence formally in October, with Ardian having engaged financial advisors Zaoui & Co and JPMorgan to facilitate the sale. The previous attempt to sell Prosol was postponed due to the impacts of the Covid-19 pandemic, making this renewed effort particularly significant.
As the deal unfolds, regulatory scrutiny, particularly concerning antitrust considerations, will likely be a key factor in the approval process. The timeline for finalizing the transaction remains to be seen, but it is expected that interested bidders will be closely monitoring the developments.
The implications of this sale extend beyond the companies involved, as it could affect shareholders, employees, and the broader market landscape. For shareholders, the sale could unlock substantial value, while employees may benefit from renewed investment under new ownership. Overall, this transaction marks a pivotal moment in the retail sector, promising to reshape the competitive dynamics in the French and European markets.