PLY Analytics co-founder Vitalij \u0160ostak evaluated for Verslo \u017einios the price (\u20ac1.3 billion) at which Salling Group acquired the retail chain Rimi.<\/p>\n\n\n\n
\u201cRimi Baltic\u2019s EV\/EBIT multiple, excluding lease liabilities, corresponds to 10.5x; including lease liabilities \u2013 17x,\u201d calculates V. \u0160ostak. \u201cA comparison of the multiples with regional retail businesses reveals that Rimi Baltic is fairly close to the current market valuation averages and looks fairly adequate in the context of the sector.\u201d<\/p>\n\n\n\n
Including lease liabilities, V. \u0160ostak says that Rimi\u2019s multiple was somewhat lower than that of direct peers. \u201cIn other words, there is a certain premium compared with TKM and Kesko and a certain discount compared with Axfood, \u017babka, Dino, and ICA Gruppen in 2021.\u201d<\/p>\n\n\n\n
Meanwhile, the multiples excluding lease liabilities differ more significantly. \u201cIn this case, the Rimi Baltic transaction already demonstrates a significant discount compared with peers. From the examples provided, it is evident that in the case of Rimi Baltic there is a very large difference between the multiples when assessed with IFRS 16 lease liabilities and without them, considerably larger than for comparable companies,\u201d notes V. \u0160ostak. \u201cThis may indicate that, compared with peers, Rimi Baltic has substantially larger lease liabilities on its balance sheet relative to lease payments. Theoretically, this could mean that the lease terms are significantly longer.\u201d<\/p>\n\n\n\n