Romanian retailer La Cocoș to speed up expansion with EBRD, CEECAT Capital and Morphosis Capital as shareholders

The European Bank for Reconstruction and Development (EBRD), CEECAT Capital, and Morphosis Capital Fund II signed an agreement to become the majority shareholder in the local retailer La Cocoș, owned by Romanian entrepreneurs Iulian and Gianina Nica. The partnership targets an accelerated expansion of the retailer’s footprint across Romania.

The collaboration aims to develop the La Cocoș network by opening a double-digit number of new locations over the next four years.

Founded in 2014, La Cocoș is a Romanian discount retailer currently operating three locations in Ploiești and Bucharest. The company recorded an annual sales growth of 24% between 2018 and 2022, reaching EUR 200 million in revenues in 2023.

Iulian Nica, founder and CEO of La Cocoș, said: “After nearly a decade of activity, we have realized that to expand nationally, we need significant investments, without which our expansion could take over 15 years. As the founder of La Cocoș, this transaction provides us with the financial resources and expertise necessary to rapidly expand our network by a double-digit number of locations over the next four years.”

Tamas Nagy, Co-Head of EBRD Private Equity, stated: “We are pleased to support the growth and expansion of La Cocoș in Romania alongside co-investors Morphosis Capital and CEECAT Capital. Food retail is one of the most active areas of investment for EBRD, and this investment is a great opportunity for the Bank to support the scaling up of an innovative retail business model in an attractive market of Romania, championed by a strong and reputable entrepreneur, Iulian Nica.”

According to the company, the investment made by the partnership between EBRD, CEECAT Capital, and Morphosis Capital comes at a crucial moment for the expansion of La Cocoș. The discount retail sector is the most dynamic segment of the grocery retail market in Romania, with high growth potential in the coming years.

“We are excited to support La Cocoș as it expands its geographic presence in Romania. Iulian and his team have developed a unique and successful format, and with our collective investment, we believe La Cocoș can grow into a national champion and regional leader in its sector,” said Anthony Stalker, Partner of CEECAT Capital and Chairman of the Investment Advisory Committee.

“We are thrilled to invest in La Cocoș, a local entrepreneurial success story that has demonstrated its remarkable performance in the Romanian retail market. This investment, a second one for Morphosis Capital Fund 2, will support the rapid expansion of the La Cocoș network nationwide. Our shared vision with CEECAT Capital and EBRD is to develop a chain of stores that meets the needs of both B2B and B2C clients and for La Cocoș to become a reference point for consumers across the country, thus contributing to economic growth and strengthening the local economy,” stated Simona Gemeneanu, Partner at Morphosis Capital.