Annabella has been in business for about two decades, but its owners concentrated their attention on the Valcea County (southern Romania) and the surrounding areas for most of that time. The business started in this county, one of the few in Romania where local entrepreneurs are more powerful than international chains. Another local investor competing with foreign supermarket and hypermarket chains besides Annabella is Diana. Which is making foreign retailers even more interested. Moreover, international chains like Profi, Mega Image and Carrefour are looking at local retail chains to buy to consolidated their market position.
The sale of the Annabella store chain has attracted the interest of both strategic and financial investors looking to buy one of the most powerful Romanian businesses in the sector, market sources say. Unlike other businesses, valuation in retail starts from the sales not the EBITDA. With major retailers, it is usually at 50% to 55% of the sales, ZF sources say, so Annabella might be sold for more than RON100 million. (EUR1=RON4.5503)
(English version by Loredana Fratila-Cristescu)