Car dealer Rolf negotiating M&A deal after announcing plans to expand into 12 Russian regions

MOSCOW. Oct 8 (Interfax) - Rolf, Russia's biggest car dealer in revenue terms, is looking into an M&A deal as one possible option for scaling its business, and plans to expand into 12 Russian regions and hold an IPO in 2025-2026.

The group's new owner Umar Kremlev and First Deputy General Director Svetlana Vinogradova presented Rolf's updated 2030 development strategy on Tuesday.

"We want to develop the strategy at the level of a new ecosystem. Any mention, any notion of our client about cars should be brought to life through Rolf. Undoubtedly, an increase in the range, including in the bike, auto and quad segments, is planned, as well as of electric cars. We will offer our clients new services, tuning [and] detailing. We will also create our own marketplace and other services - roadside assistance and car rentals," Vinogradova said during the presentation of the strategy.

Rolf, which operates in Moscow and St. Petersburg, plans to expand into 12 regions - Sochi, Krasnodar, Rostov-on-Don, Nizhny Novgorod, Saratov and Samara, as well as Yekaterinburg, Ufa, Chelyabinsk, Perm, Kazan and Tyumen.

Asked whether Rolf is considering acquiring other businesses as part of an M&A deal amid the announced plans for expanding its geographical presence, Vinogradova said: "We are considering it, negotiations are ongoing. An NDA [non-disclosure agreement] has been signed, I can't talk about it." At the same time, she confirmed that negotiations with Russia's second largest car dealer by revenue, Keyauto, which wanted to acquire Rolf's business as a sole buyer at the end of 2021, have ended.