Lenta bought one of the largest pharmacy chains, Ulybka Raduga

“The transaction was implemented as part of the strategy to transform Lenta into a multi-format player and will allow it to become one of the leaders in the drogerie segment, as well as confidently establish itself in the growing perfumery and cosmetics market. products whose volume at the end of the year can exceed one trillion rubles,” the message says.

Rainbow Smile will operate as a separate format, maintaining core operating processes and existing branding. In addition, the company will continue its geographical expansion, including strengthening its position in the Moscow region, Lenta added.

The Federal Antimonopoly Service granted Lenta’s request to approve the transaction. It will be financed mainly with its own existing money until June 30, 2025. Lenta will begin to consolidate the Rainbow Smiles business in its reporting from December 2024.

Kommersant sources told Kommersant in April 2023 that Lenta plans to acquire Rainbow Smile. At the same time, Infoline-Analytics experts valued the Rainbow Smiles business at approximately 35 billion rubles.

Lenta is one of the largest retail chains in Russia. According to its own data as of December 31, 2023, the company has 2.3 million m2. m of commercial space, 261 hypermarkets, 246 supermarkets and 2.3 thousand convenience stores. At the end of nine months of 2024, the retailer’s revenue increased by 58.9% year-on-year to 624.5 billion rubles, and net profit amounted to 15.3 billion rubles.

“Rainbow Smile” is one of the country’s largest cosmetic and household goods store chains in drogerie format. The retailer has 1.6 thousand stores in 270 cities in Russia. In 2023, the company’s revenue amounted to 13 billion rubles, more than triple that of 2022, and net profit – 148 million rubles.