The financial investors who took over the Romanian retailer with a rapid expansion, La Cocos, are selling their 70% stake to Schwarz Group – the market leader that operates the Lidl and Kaufland chains. The founder of the chain expects the German group to preserve the Romanian retailer’s identity and develop it along Lidl and Kaufland across Europe.
The European Bank for Reconstruction and Development (EBRD) and investment funds Morphosis Capital and CEECAT announced last August the signing of an agreement to become the majority shareholder in the Romanian retailer La Cocos, previously owned by entrepreneurs Iulian and Gianina Nica. The partnership targets an accelerated expansion of the La Cocos footprint across Romania, the financial investors said at that time.
The three investors paid some EUR 30-35 million (out of which EUR 10 million came from the EBRD) for a 56% stake, according to estimates by Ziarul Financiar at that time. Later in September, the EBRD disclosed its EUR 15 million contribution, and now the size of the total stake sold to the three financial investors is revealed at 70%.
The Romanian chain will expand in Europe under its original brand and business model, announced Iulian Nica, founder of the Romanian retail chain, who retains a 30% stake and will continue to manage the company. The brand identity will be fully preserved, from the store format and pricing policy to the current team, Nica said, quoted by Ziarul Financiar.
He added that this transaction is not a simple takeover but a strategic partnership aimed at expanding and consolidating the La Cocos concept, transforming it into an international landmark within the Schwarz Group.
“Thus, La Cocos will have the chance to become the fourth strategic pillar, alongside Lidl, Kaufland, and Schwarz Produktion [the umbrella brand of the Schwarz Group’s production facilities],” Nica said.
La Cocos serves B2C customers and small B2B businesses, offering a well-curated assortment of consumer goods, including A-brands. Its business model is based on low operational costs and efficient shopping experience, which allows it to offer lower prices than its competitors.
iulian@romania-insider.com
(Photo source: La Cocos)
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