DC Advisory advised on the sale of Grupo El Arbol to Supermercados DIA

Background

• Grupo El Árbol is one of the leading regional Spanish supermarket chains, with more than 450 stores mainly located in Castilla y León, Asturias, Aragón, Extremadura and Galicia. 
• Dia is a leading Spanish supermarket chain

Process

• DC Advisory (DC) has advised on the sale of 100% of Grupo El Árbol to Supermercados DIA

Outcome

• The market conditions in the retail food sector in Spain were mainly driven by low private consumption, high pressure on prices and margins, private label and fresh product (meat, fish) availability in supermarkets
• In order to become competitive and profitable, the above required being able to generate operating synergies (purchasing power, other) as well as having a significant market share (in the local market – ie. region)
• The transaction allowed:
  • To Grupo El Árbol´s shareholders: to put in value their stakes in Grupo El Árbol, avoiding the future threats of the sector for mid-size supermarket chains
  • To Dia: to reinforce its growth strategy by gaining size/volume as well as a substantial market share in Castilla y León, Asturias, Aragón, Extremadura and Galicia