Sector News

Carrefour to acquire Walmart’s Brazilian retailer Grupo Big in €1.1bn deal

March 27, 2021
Food & Drink

Carrefour has agreed to purchase Brazil’s third biggest food retailer Grupo Big from Walmart and investment firm Advent International, in a deal that values the company at 7 billion reais (€1.1 billion).

The deal aims to strengthen Carrefour’s presence in Brazil, in particularly expanding its footprint in regions where it has limited penetration such as the northeast and south of the country. By combining the groups, the retailer claims it will be able to offer a broader range of products and services at more competitive prices.

Carrefour says the acquisition would provide a net additional contribution to EBITDA of 1.7 billion reais (€260 million) on an annual basis, three years after the transaction closes.

Present in Brazil since 1995, Grupo Big – formerly Walmart Brazil – operates a multi-format network of 387 stores and generated gross sales of 24.9 billion reais in 2020.

Carrefour has been present in Brazil since 1975 and operates 489 stores under the Carrefour banner, Carrefour Bairro and Market banners, as well as the Atacadão banner.

Combined, the two groups have gross sales of around $100 billion reais, operate 876 stores and have around 137,000 employees.

While expanding in its traditional formats, the transaction will enable Carrefour Brazil to grow its footprint in formats of limited presence, such as supermarkets (Bompreço and Nacional banners) and proximity stores (Todo Dia banner). Following the acquisition, Carrefour Brazil will operate in a new market segment with the Sam’s Club format through a licence agreement with Walmart.

“Our Group is on the offensive: The acquisition of the Big Group is a major transformation movement for Carrefour Brazil,” said Alexandre Bompard, chairman and CEO of Carrefour Group.

“In this continental country with immense development prospects, we have accentuated our leadership in the food distribution market over the past three years, and Big will further strengthen it with very complementary formats and locations.

“The transaction fits perfectly into the Carrefour Brazil ecosystem and into the Group’s acquisition strategy, centred on the consolidation of our key markets,” Bompard added.

Including this transaction, Carrefour Brazil will have invested over $15 billion reais in the region since 2019.

Upon completion of the deal, Carrefour Group will own around 67.7% of Carrefour Brazil (compared to its 71.6% stake today), while Península Participações will own 7.2% and Advent International and Walmart 5.6%.

The transaction – which remains subject to regulatory approval and other customary closing condition – is expected be completed in 2022.

By Emma Upshall

Source: foodbev.com

comments closed

Related News

October 23, 2021

Coca-Cola announces 100% plant-based bottle prototype for commercial testing

Food & Drink

Coca-Cola is unveiling a fully plant-based PET (bPET) bottle prototype, excluding the cap and label. The beverage giant has produced a limited run of 900 bottles, confirming the prototypes are recyclable within existing recycling infrastructures, alongside PET from oil-based sources.

October 23, 2021

McDonald’s and Starbucks increase investment in reusable packaging and fiber-based recyclability

Food & Drink

McDonald’s and Starbucks are committing an additional US$10 million to the NextGen Consortium, an initiative aiming to improve environmental sustainability standards in the foodservice industry. Founded by investment firm Closed Loop Partners, the Consortium is investigating methods of advancing the design, commercialization and recovery of packaging materials.

October 23, 2021

Hortifrut’s US$280M acquisition of Atlantic Blue bolsters European position

Food & Drink

Hortifrut is purchasing Atlantic Blue for US$280 million. Atlantic Blue is a key player in the growing and marketing of berries in Europe and Northern Africa, based in Huelva, Spain. The transaction will allow Hortifrut to expand its growing area by about 20% and consolidate its position as the largest fresh blueberry platform in Europe and the UK.

Send this to a friend