Carrefour has reached an agreement with Advent International and Walmart to acquire Grupo BIG, the third largest food retailer in Brazil. The retailer sees considerable potential for synergy and growth.
Carrefour is making its largest acquisition since Alexandre Bompard headed the French retailer. The transaction values Grupo BIG at an enterprise value of 7.0 billion Brazilian real (about 1.1 billion euros), and is paid 70% in cash and 30% in shares. This acquisition strengthens Carrefour Brazil's presence in this market with significant growth potential, the retailer says. It will allow Carrefour Brazil to offer Brazilian consumers a wider range of products and services at more competitive prices.
Grupo Big is the number three food retailer in Brazil. The company operates 387 stores, from large Sam's Club cash & carry stores and Big hypermarkets to supermarkets, convenience stores and discounters. The group is particularly strong in the northeast and south of the country, while Carrefour is stronger in the southeast.
Carrefour has been present in Brazil since 1975 and operates 489 stores there. The retailer will convert a part of the stores to its own banners, but the unique Sam's Club formula will continue to operate independently through a licensing agreement with Walmart.