KPMG advises investors on acquisition of Romanian discounter La Cocoș

Romanian discount retailer La Cocoș has been acquired by a group of investors, who were advised during the deal by experts from KPMG.

The European Bank for Reconstruction and Development (EBRD), CEECAT Capital, and Morphosis Capital have become the new majority shareholders of La Cocoș, with financial details of the valuation not publicly disclosed. The EBRD is providing €10 million in equity financing, while private equity fund managers CEECAT Capital and Morphosis Capital are throwing in additional funding.

Founded in 2014, La Cocoș is a growing discount retailer. The company offers around 10,000 products at competitive prices, due to lower operational costs, to both individual customers and small businesses. In 2023, the company generated revenues of €200 million, up 24% on four years previous.

With the added financial muscle, La Cocoș aims to fund its further growth and expansion plans, enhance its competitiveness and market presence. La Cocoș currently operates three stores in Ploiești and Bucharest, and has already announced plans to open a fourth and fifth location in Brașov and Pitești.

Iulian Nica, founder and CEO of La Cocoș, said: “This transaction provides us with the financial resources and expertise necessary to rapidly expand our network by a double-digit number of locations over the next four years.”

In a statement, leaders of the three investment groups said that La Cocoș has what it takes to grow into a national champion and regional leader in the discount grocery sector.

The EBRD, CEECAT Capital, and Morphosis Capital received M&A advice from KPMG during the acquisition process, led by a team of three partners and directors: René Schöb, Elena Surdeanu, and Roxana Suciu.

Commenting on the deal, Schöb said: “We are proud having supported the buyers in this transaction in a fast-growing firm acting in a dynamic segment of the retail industry. Once again, we supported our clients in an agile and integrated manner so to provide them with valuable insights for their investment decision.”

Surdeanu added: “We are pleased to have had the opportunity to work together with EBRD CEECAT Capital and Morphosis Capital on this interesting project and that we have contributed to one of the most significant and unique transaction in the Romanian retail sector.”