Euroweek; 3/30/2007, Issue 997

“X5 Retail Group, the Dutch-registered but Russian-run company that owns Russia's leading food retail chains Pyaterochka and Perekrestok, could raise $800m-$1bn through a Moscow equity offering. X5 has an option, exercisable between January and June 2008, to buy 100% of Karusel, a fast-growing hypermarket chain that has 16 stores and plans to have about 25 by the beginning of 2008. Analysts estimate Karusel could be worth $1bn. Pyaterochka and Perekrestok merged last May to create X5. Under the deal, the former owners of Pyaterochka gave X5 an option to buy Karusel. Hypermarkets are the third strand of X5's growth strategy, alongside supermarkets and local discount stores. … The group now runs 451 Pyaterochka soft discount stores in Moscow, St Petersburg and Yekaterinburg. A further 606 across Russia, Ukraine and Kazakhstan are run by franchisees.”

 

Euroweek; 8/18/2006, Issue 967

“Banks have signed into the groundbreaking $800m syndicated loan backing the merger of Russian supermarket chains Pyaterochka and Perekriostok. The financing, signed at the end of last week, has set a benchmark for acquisition financings outside Russia's energy and commodities sectors, and is one of the largest loans ever for an east European retailer. The $800m three year loan was fully underwritten by book runners ABN Amro, HSBC, Raiffeisen Zentralbank Österreich (RZB) and WestLB. … Pyaterochka finalized its $1.6bn merger with Perekriostok, part of the Alfa Group conglomerate, in May, and syndication of the loan began in June.”

 

Euroweek; 4/15/2005, Issue 899

“Pyaterochka, Russia's largest food retailer, is set to offer investors a rare pure play on the country's consumer boom as it readies an IPO that will value the chain at up to $2.5bn. Credit Suisse First Boston and Morgan Stanley are leading the London IPO, which is expected to raise about $500m for Pyaterochka through the sale of global depositary receipts. The price range for the deal is expected to be set on April 25. Bankers working on the deal said they expected the IPO to value the company at between $1.7bn and $2.5bn.

Pyaterochka's net sales rose 54.2% in 2003 to $760m, maintaining its lead at the top of Russian food retailing by $136m, ahead of Germany's Metro. As the largest player in the Russian food market, Pyaterochka is in a strong position to play a leading role in the consolidation of the sector.

Pyaterochka had a portfolio of 222 stores at the end of September last year, with a further 166 run by franchisees, after starting in 1999 with only 16 shops, all based in St Petersburg. Discount food retailer Tander has a larger portfolio of stores than Pyaterochka. But its sales per store are less than half those of Pyaterochka's. In 2001 Pyaterochka entered the Moscow market, recording sales growth of 155% in 2002 with revenues rising from $191m.”

 

BusinessWeek May 30, 2005

“The supply of IPOs is especially strong in consumer-oriented sectors such as retail, telecoms, and food processing. Supermarket chain Pyaterochka, which was founded just seven years ago, is already Russia's second-largest retailer, with revenues of $1.1 billion last year. Its mushrooming network of 235 stores in Moscow and St. Petersburg led to sales growth of 45% last year. Revenue is forecast to grow by 30% to 40% annually over the next three years as Pyaterochka moves into underserved areas.”