The deal, which is worth some 448.86 million litas (EUR 130.1 m), needs clearance from the European Union’s (EU) competition regulators, which is expected to be obtained in a couple of months.
As a result of this acquisition, Norway’s company will manage more than 2,500 stores with 6.51 billion litas in aggregate annual revenue and 18,000 employees in seven countries.
“This acquisition makes us Europe’s second largest convenience store operator. All of the chains have a leading position in their respective markets, and it is with great humility that we are going to further develop these brands in Finland, Estonia and Lithuania,” Reitan Servicehandel CEO Magnus Reitan said in a press release.
Reitan Servicehandel will become Europe’s second largest convenience store operator, after French-owned Lagardere, according to the press release.
Reitan Group was a family-owned company with a long-term perspective for work, Reitan said.
“Although the convenience store sector has had challenging few years in parts of Scandinavia, we strongly believe there is a lot of potential on a long-term scale. Demographic indicators such as population growth within the cities, increase in public transport density, as well as a greater number of single households, all contribute to strengthen the prediction of convenience stores becoming a megatrends,” Reitan noted.
In 2011, Reitan Servicehandel generated revenues of 5.11 billion litas in Norway, Sweden, Denmark and Latvia. This year, the turnover should increase by almost 30 percent to some 6.51 billion litas.
Reitan Servicehandel comprises Narvesen in Norway and Latvia, Pressbyran in Sweden, and 7-Eleven in Norway, Sweden and Denmark. The chain ran 1,489 stores at the end of 2011.
The Narvesen and Pressbyran chains offer fast food, drinks and electronic services.
R-kioski comprises R-kioski chain in Finland, R-kiosk in Estonia and Lithuania and Lietuvos Spauda in Lithuania. As of late 2011, the chain ran 1,480 stores and its annual turnover totaled some 1.39 billion litas last year.