Russia's X5 buying B2B FMCG marketplace from tea manufacturer MAY

MOSCOW. Oct 2 (Interfax) - X5 Group is acquiring the MAY24 B2B marketplace for fast-moving consumer goods from tea and coffee manufacturer MAY, the Russian retailer said in a statement.

X5 will acquire 100% of MAY24 LLC for an undisclosed sum.

The current MAY24 team, including developers, will be retained.

The acquisition will help X5 to build its new OKOLO franchise. "OKOLO stores will gain access to a convenient order automation tool that serves as a one-stop shop, integrating both the platform and a mobile app. This will enable them to purchase goods from X5's product assortment as well as from external suppliers to build a full in-store product mix," said Igor Pletnev, OKOLO's managing director.

MAY will become X5's strategic partner for the further development of its digital distribution platform.

MAY24 connects over 200 manufacturers and distributors that supply goods across 65 regions of Russia and serves 36,000 retail outlets that purchase goods for their retail business.

According to the Unified State Register of Legal Entities, MAY24 LLC is currently 80% owned by Igor Lisinenko, the founder and chairman of the board of directors of MAY, and another 20% is owned by Irina Lisinenko.

MAY24 LLC boosted sales revenue 1.84-fold in 2023 to 101.6 million rubles. Gross profit was 101.6 million rubles and net profit 1.14 million rubles.

The X5 franchise included 398 stores under the OKOLO brand in 16 Russian regions at the beginning of September.

X5 operates the Pyaterochka, Perekrestok and Chizhik stores, and develops the Vprok.ru, 5Post, express delivery, and Mnogo Lososya cafe outlet projects. The group united 25,466 stores as of June 30, 2024.