Dia decided to divest its perfumery chain Clarel by selling it to C2 Private Equity for 60 million euros. The deal is expected to produce a negative accounting impact of 22.5 million euros on the consolidated income statement at year end 2022, as disclosed by the company to the National Securities Market Commission CNMV. The agreement covers 1,015 Clarel stores and three distribution centers spread across the country, among other assets.
It is estimated that the price Dia Retail, a subsidiary of Dia, will receive from the transaction could vary based on certain contractual parameters. The sale includes 50 million euros of debt-free value (with 10 million euros of debt), resulting in total funding of 60 million euros. The payment will be made in cash to Dia Retail at different milestones defined in the contract.
The company intends to allocate the obtained resources to advance its strategic plan. This includes completing the restructuring of nearby stores within the existing network and accelerating new openings in the same retail format.
Completion of the transaction remains subject to the satisfaction or waiver of several precedent conditions outlined in the contract. By 30 June 2023, the buyer must obtain concentration control clearance from the European Commission and or the National Markets and Competition Commission CNMC, and implement certain measures to provide financial security for Clarel merchandise. Dia noted that once the implementation is complete, it will report on the status of these conditions when appropriate.
Dia is undertaking a comprehensive restructuring process to address its financial debt. In the first half of the year, total debt reached 476.1 million euros. The company has already completed the sale of 235 supermarkets and two logistics warehouses in Villanubla, near Valladolid, to Alcampo to help settle obligations. The supermarket chain faced a challenging year, including the mandated change of chief executive leadership in the summer due to close ties with certain influential figures. The leadership transition eventually moved to Martín Tolcachir, who backed a full transformation of the business.
Dia managed to grow its net turnover by 4.1 percent and comparable sales by 9.9 percent, despite the closure of a portion of its stores in Spain. Worldwide net sales reached 5.5 billion euros in the first nine months of 2022, a 12.6 percent increase versus the same period the previous year. Yet, even strong operating results could not completely offset the stock market headwinds, as the company’s stock price endured volatility. Over the course of a year, Dia’s shares declined significantly, trading at notably low levels.