PARIS — Carrefour is expanding further into Brazil.
The French retail giant said Sunday that its Brazilian unit has inked a deal with Makro Atacadista SA to purchase 30 Cash & Carry stores in the country.
The transaction is valued at 1.95 billion reals, or $450 million, and will be paid for in cash.
The acquisition will step up the expansion of Carrefour’s Atacadão format and includes the real estate of 22 of the stores that are fully owned and eight rented stores and 14 gas stations in 17 states in Brazil.
Carrefour, the world’s second-largest retailer after Walmart, said the purchase allows Atacadão to broaden its presence, particularly in Rio de Janeiro and the country’s northeast region.
“This transaction is Carrefour Group’s most significant move in Brazil since the acquisition of Atacadão in 2007,” said Alexandre Bompard, chairman and chief executive officer of Carrefour Group, in a statement.
“It underscores our strong commitment to expanding our growth formats, in line with the Carrefour 2022 Transformation Plan,” he continued. “With this transaction, we further expand our presence in the Brazilian market, the group’s second-biggest after France.”
The 30 Makros stores, which span 1.8 million square feet, registered gross sales of about 2.8 billion reals last year, according to Carrefour.
Carrefour already has a network of 187 Atacadão stores, and the 30 new locations will be converted to the Atacadão banner during the 12 months after the transaction’s close.
“Based on the Atacadão model, Carrefour expects sales to increase by more than 60 percent and the cost structure will be optimized, making it possible to gradually achieve profitability levels close to those of the existing Atacadão network,” the company said.
“This transaction represents a growth accelerator for Carrefour in Brazil,” continued Noël Prioux, ceo of Grupo Carrefour Brasil. “With this acquisition, Atacadão will strengthen its footprint and further consolidate its presence in Brazil.
“Combined with our organic growth pace, with 20 new Atacadão stores opened in 2019, this acquisition corresponds to one year and a half of expansion and is a significant step for Grupo Carrefour Brasil,” he said.