Carrefour to Acquire Brazilian Food Retailer Grupo BIG
March 24 2021 - 2:48AM
Dow Jones News
By Olivia Bugault
Carrefour SA said Wednesday that its Brazilian arm has entered
into an agreement with Walmart Inc. and Advent International Corp.
for the acquisition of Brazilian food retailer Grupo BIG Brasil SA
in a deal that valued the company at roughly 1.1 billion euros
($1.30 billion).
The transaction should quickly allow significant synergies and
represents an annual contribution to the earnings before interest,
taxes, depreciation and amortization of roughly EUR260 million
three years after the deal is closed, the French retailer said.
The acquisition will be funded 70% by cash and the rest through
newly issued Carrefour Brazil shares, it said. The completion of
the deal is expected in 2022 and is subject to the approvals of
Carrefour Brazil's shareholders and Brazilian antitrust authority,
it said.
"Combined, the two groups have gross sales of about 100 billion
[reais], operate 876 stores and employ around 137,000 people,"
Carrefour said. BRL100 billion is equivalent to about $18.1
billion.
Write to Olivia Bugault at olivia.bugault@wsj.com
(END) Dow Jones Newswires
March 24, 2021 02:33 ET (06:33 GMT)
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