kosmo.ua
The deal may amount to about $15 million.
Dnipro-based Style D, which develops the Prostor store chain, selling perfumes and cosmetics, is in talks on the acquisition of the business of Sumatra Ltd. (the Kosmo beauty retail chain).
The deal may amount to about $15 million, according to the news outlet LIGA.net, referring to its sources.
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If the deal is struck, Prostor will rank second in Ukraine in the segment of stores selling perfumes and cosmetics, following the Eva chain.
The sales contract hasn't been signed yet, as Kosmo's assets are being evaluated now, a director of the chain said on condition of anonymity. The deal may turn out to be typical for Ukraine's retail market: the owner buys lease agreements, commodity stocks, trading equipment and, if necessary, the brand.
This refers to the sale of about 110 cosmetics stores, whereas Kosmo's pharmacy business is not part of the deal, he added.
The seller wants to sell the assets for about $15 million, an investment banker said.
Acting Executive Director of Sumatra Ltd. Georgy Sheyko says that the retailer regularly holds talks about selling its assets. He denied information on the evaluation of the assets. Representatives of Prostor did not respond to the publication's request.
U.S.-based SigmaBleyzer acquired Sumatra Ltd. in 2007 through SBF Southeast European Holdings. Experts then predicted that the U.S. firm would withdraw from the business three to four years after by selling Kosmo to an international operator. However, several financial crises could have changed SigmaBleyzer's plans, and only Ukrainian competitors are considering the acquisition of the chain.
Watsons, another large health and beauty retailer in Ukraine, has refused to buy the chain, the investment banker said. Eva co-owner Ruslan Shostak says he is not considering buying Kosmo now.
Director of the UTG consulting company Eugeniya Loktionova says there are four national chains in Ukraine, namely Eva, Watsons, Prostor and Kosmo. "For the past three years, Eva and Prostor have been developing more actively than ever," she said. The Eva chain is in the lead with about 750 stores. Then comes Watsons with about 400 stores, Prostor with about 350 stores, and Kosmo with about 110 stores.