Carrefour continues to blaze a path for itself as it closes in on another acquisition. After acquiring 172 stores under the Supersol banner in Spain, the French retailer acquired Bioazur in its home country, as we reported on our sister site AndNowUKnow. Now, the retailer has agreed to buy Grupo BIG, one of Brazil’s largest food retailers, in a deal valuing the firm at around $1.3 billion USD.
“Our Group is on the offensive: The acquisition of the BIG Group is a major transformation movement for Carrefour Brazil,” said Carrefour Chairman and CEO Alexandre Bompard. “In this continental country with immense development prospects, we have accentuated our leadership in the food distribution market over the past 3 years, and BIG will further strengthen it with very complementary formats and locations.”
According to its press release, Carrefour would be buying the company from Walmart and investment firm Advent International. This deal would boost Carrefour’s earnings, as the transaction values Grupo BIG at an enterprise value of 7 billion BRL ($1.3 billion USD).
This acquisition offers significant synergy potential from year one, the company noted, rising gradually to represent a net additional contribution to EBITDA of $1.7 billion BRL ($306 million USD) on an annual basis three years after the closing of the transaction.
“The transaction fits perfectly into the Carrefour Brazil ecosystem and into the Group’s acquisition strategy, centered on the consolidation of our key markets,” continued Bompard. “The significant synergies generated by this transaction are a lever for creating additional value and a powerful addition to the profitable growth model that we have established across our Group.”
Combined, Carrefour Brazil and Grupo BIG have gross sales of about $100 billion BRL (about $18 billion USD), operate 876 stores, and employ around 137,000 people.
For the full details on the acquisition, click here.
Will we see Carrefour give similar attention to the United States? Deli Market News will keep an eye on the retail world.
