Grupo Carrefour Brasil (“Carrefour Brazil”) has entered into an agreement with Advent International and Walmart for the acquisition of Grupo BIG Brasil SA (“Grupo BIG”), Brazil’s third-biggest food retailer. This acquisition strengthens Carrefour Brazil’s presence in this high growth potential market. It will allow it to offer Brazilian consumers a broader range of products and services at more competitive prices.
The transaction values Grupo BIG at an enterprise value of R$7.0bn1 (c.€1.1bn). This acquisition offers significant synergy potential from year one, rising gradually to represent a net additional contribution to EBITDA of R$1.7bn (c.€260m) on an annual basis three years after the closing of the transaction.
Combined, the two groups have gross sales of about R$100bn, operate 876 stores and employ around 137,000 people. Present in Brazil since 1995, Grupo BIG operates a multi-format network of 387 stores and generated R$24.9bn gross sales (R$21.7bn net sales) and R$928m adjusted EBITDA in 2020. Carrefour Brazil, which has been present in the country since 1975, operates 489 stores and generated R$74.7bn gross sales (R$67.6bn net sales) and R$5.6bn adjusted EBITDA in 2020.
