Grupo Carrefour Brasil (Carrefour Brazil) has agreed to acquire Grupo BIG Brasil SA (Grupo BIG), the third largest food retailer in Brazil, from Advent International and Walmart for BRL 7.0 billion (approximately €1.1 billion).
”This acquisition offers significant synergy potential from the first year, gradually strengthening to reach a net EBITDA contribution of BRL 1.7 billion (around €260 million) on an annual basis, 3 years after the effective completion of the transaction,” said Carrefour in a statement.
The two groups together have combined sales of around BRL100 billion(app. €16bn), operate 876 stores and employ around 137,000 people.
READ ALSO : Carrefour to acquire 30 Makro stores in Brazil
Present in Brazil since 1995, Grupo BIG operates a multiformat network of 387 stores and achieved a turnover including tax of BRL 24.9 billion (BRL 21.7 billion excluding tax) and an adjusted EBITDA of BRL 928 million in 2020.
Carrefour Brazil, present in the country since 1975, operates 489 stores and achieved a turnover including tax of BRL74.7 billion (BRL 67.6 billion excluding tax) and an adjusted EBITDA of BRL 5.6 billion.
“Our Group is on the offensive: The acquisition of the BIG Group is a major transformation movement for Carrefour Brazil. 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. The transaction fits perfectly into the Carrefour Brazil ecosystem and into the Group’s acquisition strategy, centered on the consolidation of our key markets. 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,” said Alexandre Bompard, Chairman and CEO of Carrefour Group.