Krasnodar, Russia (October 27, 2023): Magnit, one of Russia’s leading retailers, reports that Tander JSC (Magnit’s primary operating subsidiary) has signed an agreement with DV Nevada LLC (the company operating the largest retail chain in the Far East — Samberi; hereinafter — Samberi) and its owners to acquire a 33.01% equity stake of Samberi, with an option to buy out the remaining stock within the next five years (hereinafter — the Deal).

The Deal will be executed after its approval by the Federal Antimonopoly Service and fulfillment of other conditions agreed between the parties and is expected to be closed in the summer of 2024.

Samberi is the largest retail chain in the Far East in terms of the number of stores and revenue. Overall, Samberi Group has 291 stores, including 31 Samberi hypermarkets, 42 supermarkets under the Samberi and Samberi-Express banners, as well as 82 Raz Dva minimarkets and 136 Blizky discounters, with a total selling space of 211 thousand square meters. The stores are spread across over 50 cities and towns of Primorsky, Khabarovsk, and Amur Regions, as well as Jewish Autonomous Region. The retailer operates three distribution centers in Khabarovsk and one in Vladivostok and has a cross-docking warehouse in Blagoveshchensk. Samberi Group employs around 10.3 thousand people.

Samberi will continue developing under its banners and current management team, with Magnit’s representatives overseeing the business’s strategic direction. Magnit expects the Deal to result in synergies in procurement conditions and enable the two companies to integrate the best practices and technology to improve the customer proposition, further evolve their store concepts, and capture additional market share.

The acquisition of Samberi will expand Magnit’s footprint to all federal districts of Russia and bring the total number of regions where the Company is represented to 71. As a result of the Deal, Magnit will have over 10 million square meters of selling space and become the first Russian retailer to achieve this milestone.

Andrey Bodrov, Magnit’s Chief Investment and Strategy Office:

The acquisition of Samberi will enable Magnit to access the promising market of the Far East and immediately become a leader in this region, while our partnership with the company’s founders will ensure a harmonious collaboration without disrupting the current architecture of the business that is already optimally suited for the local consumer. In turn, thanks to the synergies in procurement and access to Magnit’s technology and expertise, Samberi will be able to make its customer proposition more competitive and gain momentum for developing further.

Lev Volkov, Chief Executive Officer of Samberi:

In today’s rapidly evolving retail market, partnering up with the largest federal retail chain enables us, a local player, to improve our proposition to the customers in the Far East quickly and competently by consolidating our purchasing power and upgrading internal process technology. All these efforts will be reflected on our store shelves in the form of better pricing, assortment, and service offerings.

Magnit enters Far East and acquires region’s leading chain