The distribution group Carrefour has entered into an agreement with Dairy Farm for the purchase of Wellcome Taiwan, which implies the acquisition of 224 proximity stores, in an operation valued at 97 million euros that will allow the French company to consolidate its position in the Taiwanese retail market.
The transaction, which could be completed in late 2020, involves the acquisition of 199 Wellcome stores, with an average sales area of 420 square meters, and another 25 “Jasons” establishments, with an average sales area of 820 square meters. Likewise, Carrefour will take ownership of warehouses, including land ownership.
Wellcome Taiwan recorded net sales of around 390 million euros in 2019. The purchase will allow Carrefour to accelerate its development in Taiwan in the rapidly growing proximity format in the country, becoming the second local player in this format.
In this sense, Carrefour plans to transform Wellcome stores to the Ensign Market within 12 months after the closing of the transaction and turn the Jasons stores into a premium ensign.
Carrefour currently operates 137 stores in Taiwan, including 69 proximity stores under the ‘Market’ banner. The French group achieved net sales of 1,968 million euros in the country in 2019, as well as an Ebitda of 209 million euros and a recurring operating profit of 83 million euros.