Makro sells Uyum for a stronger comeback
Makro Market has sold ts Uyum G da branded 56 stores n Istanbul and three stores n Tek rdag to M gros w th, an add t onal 17 Makro stores for cons derat on, for TRY 105 m ll on ($27 m ll on). The deal marks a m lestone for Makro, the Ankara-based reta ler, and rather than a setback after f nanc al d ff cult es, may mark a step towards growth.
Makro, formerly a l sted company, had penetrated Istanbul by buy ng Uyum G da markets n 2012 for TRY 68.7 m ll on ($38.5 m ll on) from F mar Hold ng. The acqu s t on was a major step for Makro to enter the champ ons league of Turk sh reta l. Makro was pos t oned to grow n the Anatol an prov nces wh le Uyum a med to grab a market share n the largest market, Istanbul. The system worked flawlessly untl ta med to merge two compan es under Makro, wh ch was publ cly l sted. However, regulat ons d dn’t allow a merger, or made t almost mposs ble.
Makro del sted for the merger. However, that move affected f nanc als at a t me when all reta lers were hav ng d ff culty n creat ng sat sfactory EBITDA levels. The whole move depended on a b gger strateg c plan wh ch a med to nject equ ty from an nvestor and sponsor organ c and norgan c growth opt ons. As a Turk sh proverb says, the calculat ons at home d dn’t work at the market and f nanc als deter orated s gn f cantly. Makro faced bankruptcy. The sale of Uyum to M gros once aga n emerged as an opt on after past offers from M gros, wh ch Makro rejected.
Makro s work ng w th London-based adv sory f rm Alfa Investment n the deal and s expected to s gn under a b gger deal that m ght offset ts losses. So the sale s not the end but a new beg nn ng for Makro Market.