Background

  • Aldi Nord, a pioneer in discount grocery, is one of the world's leading retailers with operations in nine European countries and the US, including 190 stores, 40 development projects and three logistic centers in Denmark, employing 2,800 people
  • Aldi Nord has been active in Denmark since 1977 but with low market share has achieved unsatisfactory results partially due to limited opportunities to expand market share through organic growth and/or acquisitions
  • As part of a long-term transformation process, Aldi Nord has decided to focus on eight countries in Europe and consequently to sell the subcritical activities in Denmark 

Process

  • Aldi Nord appointed DC Advisory in cooperation with partner Danske Bank to advise on the implementation of the sales process
  • A particular challenge was that Denmark is already highly concentrated in food retailing and therefore certain constellations were excluded under antitrust law
  • The process was carried out with the utmost confidentiality; only a very small circle of potential bidders were approached at executive level

Outcome

  • Due to the competitive bidding process led by DC Advisory and Danske, it was possible to find new operators for the vast majority of the activities and to achieve attractive returns for Aldi Nord
  • 114 stores, seven development sites and the three logistics centers will be sold to REMA 1000, the discount subsidiary of the Norwegian retail group Reitan, and further 16 stores and 14 development sites will be sold to competitors Salling Group, Coop and Lidl, this includes the retainment of 1,780 employees
  • This transaction further demonstrates DC Advisory’s strong expertise within the Consumer, Leisure & Retail sector and its capability to tackle complex challenges
  • This transaction closed on January 16, 2023

"It was a great honour and experience for us to advise Aldi Nord on this sensible transaction. The Aldi team’s hands-on approach was extremely helpful to align processes at short notice to achieve the desired outcome. This transaction showcases DC Advisory’s expertise in the retail sector and we are delighted to have helped Aldi Nord accelerate its growth strategy.”

Stephan von Parpart
Managing Director, DC Advisory Germany