Colruyt has sold its French food service division, Pro à Pro, to Metro. The Belgian department store group said it needed to sell as the industry is currently consolidating.
Follow consolidation trend
In France and its Overseas Territories, Pro à Pro is an important food supplier for the social (hospitals, schools, company canteens) and the hospitality (hotels, restaurants and catering companies) industries. It services about 42,000 customers and represents an annual revenue of 670 million euro.
Even though it is profitable, Colruyt still decided to sell. "The French food service market is currently consolidating and that is why Colruyt mapped out Pro à Pro's strategic options and decided its growth potential can best be achieved if it were to merge with that of a strong, complementary company", Colruyt said.
Buyer Metro will keep the Pro à Pro name. The German company's French activities are mainly wholesale-focused, with 94 Metro Cash & Carry stores. Included in the deal are the brand name, the operational activities, its distribution centers, logistical platforms and Pro à Pro's trucks. Both Metro and Colruyt have not made any comments about the fee, but financial analysts estimate it ranges between 120 and 200 million euro.