BRAZIL – Grupo Carrefour Brasil, the Brazilian subsidiary of Carrefour Group has signed an agreement with Makro Atacadista SA to acquire 30 Cash & Carry stores in Brazil, accelerating the expansion of its growing Atacadão format.

The acquisition involves 30 stores (including the real estate of 22 of those, which are fully-owned, and another 8 rented stores) and 14 gas stations, located in 17 states across Brazil in a cash transaction valued at 1.95 billion Reais (US$452.2m)

According to the retailer, the 30 stores, totaling 165,000 square meters of sales area, posted gross sales of around 2.8 billion Reais (US$650m) in 2019 and offer strong geographic complementarity with the existing Atacadão network.

Carrefour said that the acquisition will allow Atacadão to expand its presence, notably in the densely populated state of Rio de Janeiro (7 stores) and in the Northeast region (8 stores).

The new stores will add to Atacadão’s existing network of 187 stores, while the company also continues its strong organic growth.

Carrefour plans to convert these stores to its Atacadão banner during the 12 months following the closing of the transaction.

Based on the Atacadão model, Carrefour expects sales to increase by more than 60% and the cost structure will be optimized, making it possible to gradually achieve profitability levels close to those of the existing Atacadão network.

“This transaction is Carrefour Group’s most significant move in Brazil since the acquisition of Atacadão in 2007,” said Alexandre Bompard, Chairman and CEO of Carrefour Grou.

“It underscores our strong commitment to expanding our growth formats, in line with the Carrefour 2022 Transformation Plan.

“With this transaction, we further expand our presence in the Brazilian market, the group’s second-biggest after France.”

Noël Prioux, CEO of Grupo Carrefour Brasil, added: “This transaction represents a growth accelerator for Carrefour in Brazil. 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.”

The transaction is subject to certain customary conditions.