CVC seals C1000 sale

Private equity firm CVC Capital Partners is to sell supermarket chain C1000 to Dutch rival grocer Jumbo. Combining the two supermarkets will leave the businesses with 23 percent market share.

CVC has agreed to sell C1000 to one of its rivals Jumbo in a deal worth €900 million, according to a statement released by Jumbo. 

The firm originally purchased a 73 percent stake in the business in 2008 from supermarket group Ahold, which valued the company at €950 million according to media reports. The return made by the firm was not disclosed and CVC declined to comment on the sale. 

When the deal completes, Jumbo and C1000 will hold a 23 percent market share of Dutch supermarkets. The pair will stand second only to Ahold's other market-leading Albert Heijn chain. Ahold currently still owns a 20 percent indirect interest in C1000, without any board representation. 

CVC has been mulling the sale of C1000 for which it hoped to get €900 million to €1 billion according to reports. Earlier this month private equity firms Bain Capital and BC Partners were understood to have entered the second round of bidding for the supermarket. At the time it was suggested that CVC might favour a recapitalisation of the business if an adequate price could not be obtained.