Sfakianakis S.A. signed a preliminary agreement for the acquisition of car retail activities (Ford, Volvo, Fiat, Alfa Romeo & Lancia) and spare parts sector (for the respective brands) of Kontellis Group.
Sfakianakis S.A., strengthens furthermore its position in the Greek car retail sector with 55 points of sale (showrooms and service facilities), representing 11 automobile Brands (Suzuki, Opel, Ford, Volvo, BMW, Fiat, Alfa Romeo, Lancia, Cadillac, Corvette and Hummer). The company operates the biggest Greek car retail sale network and one of the larger in the European market. Sfakianakis S.A. will proceed immediately with the merging of both the existing and the acquired retail network activities, targeting in 20.000 car sale units in 2008 which will result in a 7% market share of the total Greek car market.
In total it is expected that Sfakianakis S.A. will obtain through both the retail and wholesale (Suzuki) activities 32.000 car sale units and 11,5% market share.
The acquisition of the car retail sale activities for Ford, Volvo, Fiat, Alfa Romeo, Lancia, and the respective parts sector of Kontellis Group, will add approx. 150 euro millions in the turnover of Sfakianakis S.A., while the synergies that will result from the merging of the two retail networks will have a strong positive effect on the profitability of company.
The target of Sfakianakis Group is that by 2010, the company's car retail division (network) will be within the 25 bigger retail networks in Europe, and in the long-term, through the expansion of the Group in the countries of South-eastern Europe, Sfakianakis S.A. is expected to operate one of the 10 bigger car retail networks in Europe.