Carrefour to acquire stores in Brazil for more than $450 millionChristian Fernsby ▼ | February 17, 2020
Grupo Carrefour Brasil has signed an agreement with Makro Atacadista to acquire 30 Cash and Carry stores in Brazil, accelerating the expansion of its growing Atacadão format.
Topics: Carrefour acquire store Brazil
The transaction is valued 1.95 billion Reais ($453,741,619), to be paid in cash.
The 30 stores, totaling 165,000 square meters of sales area, posted gross sales of around 2.8 billion Reais in 2019 and offer strong geographic complementarity with the existing Atacadão network.
The acquisition will allow Atacadão to expand its presence, notably in the densely populated state of Rio de Janeiro (7 stores) and in the Northeast region (8 stores).
The new stores will add to Atacadão’s existing network of 187 stores, while the company also continues its strong organic growth.
Carrefour plans to convert these stores to its Atacadão banner during the 12 months following the closing of the transaction.
Thus, clients will be able to benefit from Atacadão’s prices and offer and from Grupo Carrefour Brasil’s successful financial services.
Based on the Atacadão model, Carrefour expects sales to increase by more than 60% and the cost structure will be optimized, making it possible to gradually achieve profitability levels close to those of the existing Atacadão network. ■