Mexicana Chedraui buys US retailer Smart & Final for $ 620 million

Photo: Oleg Magni / Pexels

The Mexican company Grupo Chedraui announced the purchase, through its subsidiary Bodega Latina Corporation, from US retailer Smart & Final for $ 620 million.

“We are excited about the combination of Grupo Comercial Chedraui and Bodega Latina with Smart & Final, which further scales and expands our presence in the United States. This acquisition is aligned with our long-term strategy of finding financially attractive opportunities. and with the generation of value, keeping the consolidated debt in prudent ranges ”, said José Antonio Chedraui.

For his part, David Hirz, CEO of Smart & Final, commented that “Under the ownership of Grupo Comercial Chedraui and Bodega Latina, Smart & Final will benefit from your approach, given its recognized and established position in the food retail market., while contributing our own best practices and experience. “

The purchase of the company, which operates around 250 stores in the United States and northern Mexico, will be concluded in the second or third quarter of this year and includes the absorption of a “certain debt” for the acquirer, Chedraui said.

Grupo Financiero Monex pointed out that the operation is very relevant for Chedraui, not only because it is the largest transaction in its history and represents 42% of its market capitalization, but because it will also position it as the second largest chain of self-service stores in Mexico.

The Mexican retailer commented that they are waiting for regulatory approvals in Mexico and the United States and announced that the self-service stores that operate under the brands Smart & Final and Smart & Final Extra! will be integrated into its subsidiary in the United States, Bodega Latina, under the formats of El Súper and Fiesta, and that the purchase will allow it to enter the self-service segment in the northwest of Mexico.

Chedraui explained that the operation will be financed through the contracting of debt at the subsidiary level, which will increase its consolidated debt level at a rate of approximately 1.1 times, keeping its treasury at prudent levels.

Chedraui is a Mexican company, which is dedicated to the retail industry. It began operations as a supermarket in 1970 in the state of Veracruz. In Mexico it operates 203 Chedraui stores, 64 Super Chedraui stores, 11 Super Che stores and 47 Supercito stores, and In the US, it has 64 El Súper stores and 59 Fiesta stores.

With information from Reuters and El Financiero

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