19 April 2008
BEIRUT: A major Kuwaiti food company acquired Lebanon's Monoprix and Giant stores for $97 million. Michael Abchee, the general manager of Admic which owns Monoprix and Giant malls, told The Daily Star that Kuwait's Sultan Center for Food Product, better know as TSC, has made this transaction after several months of negotiations.
"This is a good deal. We will still keep BHV stores in Lebanon and continue our expansion plans in the region," he said.
With retail as its primary focus, TSC is Kuwait's largest independent retailer and a leading supplier of supermarket items, perishables, and general merchandise in the Middle East.
Admic is a franchisee of Monoprix supermarkets and BHV department stores, two major names in French retailing belonging to Groupe Galeries Lafayette. The company was launched with $15 million in equity and $10 million in debt and became one of the top three retailers in the country.
The first BHV store was opened in December 1998. Monoprix followed in early 1999. By the end of 2003, there were four Monoprix supermarkets.
Admic also opened a $70-million shopping mall just north of Beirut at the end of 2004.
Admic has scrapped plans to open Les Galeries Lafayette, which was supposed to be located in the Souks project in Beirut Central District.
Abchee said Admic already has a presence in Dubai and aims to expand further in the Gulf.
An industry source told the paper that this was the biggest transaction involving the acquisition of supermarket and mall chains in Lebanon.
He added that Gulf investors are still showing keen interest in Lebanon despite the tense political situation.
Abchee said the Kuwaiti firm promised to keep the 1,600 staff in Monoprix and Giant malls.
"There won't be major changes in the supermarkets and malls. But the Kuwaitis may change the name of these outlets to TSC," Abchee said.
The change of ownership is expected to take 60 days. - The Daily Star
Copyright The Daily Star 2008.
