Carrefour to Acquire Brazilian Food Retailer Grupo BIG

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 [e-mail]

(END) Dow Jones Newswires

March 24, 2021 02:33 ET (06:33 GMT)

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