Thursday, 13 January, 2022

Carrefour announces the purchase of 30 Makro stores in Brazil for 420 M EUR

Very widespread in Latin America, “cash and carry” stores, which often take the form of warehouses, allow customers to buy in bulk, and therefore at low prices, and in self-service.

“The transaction involves 30 stores (including 22 fully-owned and eight leased stores) and 14 gas stations, located in 17 states of Brazil, for a price of 1.95 billion Reais (approximately 420 million euros). ‘euros), paid in cash, “said a statement from the group.

“The economic conditions in which we are carrying out the operation are very attractive,” said Matthieu Malige, CFO of Carrefour, to AFP.

With this transaction, Carrefour intends to strengthen its territorial network in Brazil, the group’s second country after France, where it has been present since 1975 and in 2007 bought the hard-discount hypermarkets Atacadao.

“The new stores will be added to the existing network of 187 Atacadao stores”, with which they offer “a strong geographical complementarity”, making it possible in particular to strengthen the latter’s position “in the densely populated state of Rio de Janeiro ( 7 stores) and in the Northeast region (8 stores), depending on the group.

“Makro really opened up the cash and carry market”, but only for professionals, “from 1972” and as “they were pioneers in this market, they took and developed top quality locations,” he said. Mr. Malige.

The new stores are also intended to be converted, in the twelve months following the completion of the operation, “under brand, under model, under concept, under price policy” Atacadao, according to him.

Profitable format

This “makes us comfortable to envision a 60% growth in turnover for these 30 stores since the Atacadao business model” – which grew by nearly 12% in 2019 – “is much more efficient than the business model. de Makro ”, added Mr. Malige.

This buyout operation is “very consistent from a strategic point of view with what we are already doing from an organic point of view: we are investing in a country of growth, profitability in a growth format and profitability” , further justified the group’s financial director.

“As part of our Carrefour 2022 strategic plan, we decided that + cash and carry + was a growth format, and we therefore decided to double the speed of Atacadao’s organic expansion from 10 to 20 stores per year, what we did in 2018 and 2019 “, he detailed.

To these 20 stores per year are therefore added the 30 Makro stores whose acquisition was announced on Sunday.

Across the whole of Latin America, the group, also located in Argentina, had 182 cash and carry stores at the end of June 2019.

“This is the first major acquisition of the Carrefour 2022 plan, launched in January 2018” and which the group has decided “to further accelerate with the lever of acquisitions”, underlined the CFO of Carrefour.

In addition to Atacadao, the activities of Grupo Carrefour Brasil, the group’s Brazilian entity which is listed on the Sao Paulo Stock Exchange, include Carrefour hypermarkets, supermarkets and convenience stores in Brazil, as well as financial and complementary services in this country.

(with AFP)