The Russia-Chinа Investment Fund (RCIF) has acquired 23.1 per cent of JSC Detsky Mir from CJSC DM Finance, a subsidiary of Sistema JSFC, a publicly-traded diversified holding company. The total consideration of the transaction is RUB9.75 billion.
Under the terms of the agreement, significant funds from the transaction will be invested in expanding Detsky Mir’s nation-wide network of stores and further developing its logistics platform. This will also extend its modern sales and distribution channels for children’s products throughout Russia and the CIS. Additionally, the Group is considering opportunities for international expansion in the mid-term perspective.
Kirill Dmitriev, CEO of RDIF and co-CEO of RCIF, says: “Detsky Mir is building an amazing success story in children goods retail in Russia and the CIS. Partnership with Sistema and Detsky Mir offers a great experience for RCIF, and we are glad to take our relationship with them to the next level and to support Detsky Mir’s development and expansion to international markets, including China and other counties. The deal is in line with our investment strategy focused on growth of the middle class and its demand for goods, especially in the regions.”
Hu Bing, President and co-CEO of RCIF, says: “We are confident that Detsky Mir is well positioned to operate successfully in the challenging market environment. The company continues to expand and we hope that RCIF’s investment will support its growth and further enhance its performance.”
Mikhail Shamolin, Sistema President and CEO, says: “We are delighted to welcome RCIF as a strategic investor in Detsky Mir Group, as we share the same vision for the development of this asset. We are confident that RCIF’s investment will enable Detsky Mir Group to strengthen its competitive advantages, and will contribute to the further growth of the value of the business.”
Upon completion of the transaction Sean Glodek and Lei Teng will be nominated to the board of directors of Detsky Mir on behalf of RCIF.