The new Hungarian owners of the Flop food chain want to expand

by   CIJ News iDesk III
2022-01-17   10:33
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New Hungarian owners of the Flop food chain want to expand. They are considering the acquisition of another chain or similarly focused stores. They want to invest in the development of retail sales in the countryside. Representatives of the Hungarian investment group Oriens stated this in its corporate newsletter.

The Hungarian investment group Oriens, or its subsidiary Central European Supermarkets, became the owner of the Flop chain last July. It bought a 100% stake in FF Holding, which covers Flosman, PF Potraviny and Lahůdky Vavřík. The Hungarian investor thus acquired a company with a turnover of 2.5 billion crowns, more than 800 employees, more than 300 stores in several regions and also food wholesalers. The parties did not disclose the acquisition price.

"Every time we buy a company, we think about expanding it. One way to expand is to acquire chains or stores with a similar focus. We will be ready to do so if the opportunity arises. We will look for suitable acquisition targets (...) We will definitely use Flosman as a platform for further expansion," said Krisztián Orbán, CEO of the group.

The Hungarian group Oriens has owned the Flop retail network since July 22, 2021. The deal has been in preparation for almost a year. "We negotiated with more people and eventually chose Oriens as a financial, purely strategic investment partner," said Flosman CEO Michal Andrle. Among other things, Flosman operates the Flop grocery chain. According to Andrle, the merger with a strong investor will allow easier access to money for the development of retail sales in rural areas.

This is the first investment in the Czech food market for the Oriens Group. In the Hungarian countryside, however, it operates the Tom Market chain with more than 160 stores. At the Flop Orbán store, among other things, he highlighted the offer of fresh meat and sausages. "We also appreciate that Flosman is a family business. Family companies have a unique culture that is very in tune with how Oriens works. All companies in the Oriens Group started as family businesses," said Flóra Macher, CFO.

Flosman, which operates a network of Flop grocery stores and wholesalers, had sales of CZK 2.63 billion in 2020 from the sale of products, services and goods. It ended up with a profit after tax of 35 million. It follows from the annual report. The company operates a network of Flop stores in southern, western and central Bohemia, the Vysočina region and southern Moravia. The year before, the company had 705 employees. The company, founded by Pavel and Marcela Flosman in 1999, belongs to FF Holding and is based in Tábor. Flop stores have an average of 250 square meters of retail space, the catchment area is mostly around 3000 inhabitants.

The Oriens Group owns five companies with consolidated sales of EUR 200 million (approximately CZK 5 billion). It employs 1,700 people and has been operating on the market for 15 years. In the Czech Republic, it also controls the company Moravia Containers, which manufactures modular buildings and containers.

Source: Oriens Group and CTK
Photo: Krisztián Orbán, CEO, Oriens Group