Pepco Group has completed the sale of Dealz Poland to Blackline Ltd, an affiliate of investment firm Modella Capital, following the announcement of the sale on 3 June.
Prior to completion of the deal, Modella Acquisition Co 17 Limited assigned its rights and obligations under the sale agreement to Blackline.
Modella Capital received antitrust clearance from the Polish competition authority
Stephan Borchert, CEO of Pepco Group, said, “We wish Modella Capital and the entire Dealz Poland team every success for the future.
“Dealz Poland has served Polish consumers well for many years and we are grateful to all of the team for their commitment and contribution to the group.”
Dealz Poland
Polish discount retailer Dealz Poland recorded negative EBIT in the first half of the 2026 financial year and accounted for approximately 6.9% of Pepco Group’s revenue.
As part of the sale, Modella Capital acquired shares in Dealz Poland for nominal consideration, with Pepco Group providing an asset-backed vendor financing of up to £20 million (€23.43 million).
Under the deal, Pepco Group will also retain 35% of the net cash proceeds from any future sale of the discount retailer.
Pepco’s FMCG Exit
Pepco Group noted that the sale is part of a wider strategy to exit FMCG retail.
Following the sale of Dealz Poland, the group expects revenue growth and higher margins.
Borchert added, “The completion of the sale of Dealz Poland marks the final step in our strategic transformation away from FMCG retail. Pepco Group is now a pure-play business, built entirely around the Pepco brand and its clothing and general merchandise proposition across Europe.
“As we set out at our 2025 Capital Markets Day, this simplified structure will sharpen our strategic focus and unlock the full earnings potential of Pepco. We can now direct our full resources towards expanding the Pepco brand, accelerating growth in our core markets, and delivering stronger profitability and long-term shareholder value.”