Carrefour has initiated exclusive negotiations with NewPrinces Group regarding the sale of its Italian operations.
This decision aligns with Carrefour's strategic review launched earlier this year, affecting a significant part of its European business framework.
Details of Carrefour's Italian Network
Carrefour Italy, which comprises a versatile network of 1,188 stores—41 hypermarkets, 315 supermarkets, 820 convenience stores, and 12 cash & carry outlets—reported gross sales of €4.2 billion in 2024.
These sales account for about 4% of the entire Carrefour Group's revenue.
Financial Considerations and Market Challenges
From 2020 to 2022, Carrefour Italy saw a recovery in its performance but encountered a sales decline in 2024, accompanied by negative Recurring Operating Income and Net Free Cash Flow.
The sale agreement involves Carrefour's financial backing, with an expected net impact of -€240 million on the Group's finances.
Future Operations and Investment Plans
Post-transaction, the stores will continue to operate under the Carrefour brand under a temporary license
Post-transaction, the stores will continue to operate under the Carrefour brand under a temporary license. NewPrinces has committed to investing at least €200 million to boost Carrefour Italy's competitiveness in the long term.
This divestment is also anticipated to enhance Carrefour Group's overall growth, profitability, and recurring cash flow.
Profile of NewPrinces Group
NewPrinces Group, an Italian-based European agri-food entity, stands out with its market influence across four primary regions and exports to over 60 countries, generating sales of €2.8 billion in 2024. The company is publicly traded on the Milan Stock Exchange.
Pending Approvals and Future Outlook
The completion of this transaction is contingent upon discussions with employee representatives, obtaining necessary regulatory approvals, and the finalization of legal agreements. If all conditions are met, the deal could be completed by the end of 2025.
Carrefour has expressed strong confidence in its Italian team's dedication to making this transition successful, expressing gratitude for their ongoing commitment to customer satisfaction and service excellence.
Carrefour announces that it has entered into exclusive negotiations with NewPrinces Group regarding the sale of all its operations in Italy. This transaction is part of the strategic review initiated by Carrefour at the beginning of the year.
Carrefour Italy (“the Company”) operates a multi-format network of 1,188 stores (including 41 hypermarkets, 315 supermarkets, 820 convenience stores and 12 cash & carry outlets), and generated gross sales of €4.2bn in 2024, representing approximately 4% of the Group’s total sales.
Carrefour’s financial contribution
After a recovery period from 2020 to 2022, Carrefour Italy recorded a decline in sales in 2024, along with negative Recurring Operating Income and Net Free Cash Flow, in a particularly challenging economic and competitive environment.
The planned transaction covers all of Carrefour’s activities in Italy. The estimated net impact on the Group’s treasury is -€240m, taking into account Carrefour’s financial contribution to support the transaction.
Carrefour Group’s growth profile
The Company will continue to operate under the Carrefour brand under a license agreement during a transitional period, as provided for in the services agreement. As part of the transaction, NewPrinces has committed to invest a minimum of €200m to enhance the long-term competitiveness of the Company. In parallel, this divestment will contribute to enhancing the Carrefour Group’s growth profile, profitability, and recurring cash flow generation.
NewPrinces is a European agri-food group based in Italy. With a strong presence across four key markets and exports to over 60 countries, NewPrinces generated sales of €2.8bn in 2024. The company is listed on the Milan Stock Exchange.
Completion of the transaction
The completion of the transaction remains subject to consultation with employee representative bodies, the obtaining of required regulatory approvals, and the signing of definitive legal documentation. It could be finalized by the end of 2025.
Carrefour expresses its full confidence in the commitment of the management, teams, and all employees of Carrefour Italy to ensure the success of this transaction and to contribute to this new chapter ahead, by continuing—just as they have done tirelessly for years—to serve their customers better every day.
