Cencosud Expands in Argentina After Acquiring the Operations of Makro and Basualdo Supermarkets

• The acquisition marks the company's entry into the Cash & Carry format in Argentina.
• The agreement was signed by the subsidiaries in Argentina for US$ 122.5 million and will be financed with own resources.

SANTIAGO, Chile--(BUSINESS WIRE)--Cencosud S.A. through its Argentine subsidiaries signed today an agreement for the acquisition of 100% of the companies Supermercados Mayoristas Makro S.A. and Roberto Basualdo S.A.

The agreement signed by Cencosud S.A. (Argentina) and Unicenter S.A. contemplates a purchase price of US$ 122.5 (one hundred twenty-two million five hundred thousand United States dollars), an amount that may be adjusted based on the net debt, working capital and other conditions established in the contract. The acquisition will be made entirely with available own resources.

Makro and Basualdo have more than 35 years of history in Argentina and operate in the wholesale sales format -known as Cash & Carry- through 28 stores, most of which are owned by them. Both companies have excellent locations, with a presence in 12 cities and 10 provinces in Argentina, including Buenos Aires, Santa Fe and Córdoba. Additionally, Makro maintains a portfolio of own brands that is part of its value proposition and has a high level of customer loyalty.

Cencosud, through these new subsidiaries, will strengthen its presence in the Argentine market by entering the wholesale sales segment, also generating synergies with its current operations.

Regarding this operation, Rodrigo Larrain, CEO of Cencosud, said that “we are very pleased with this opportunity for growth in Argentina, a market where we have been present for more than 40 years with our Supermarkets, Shopping Centers, Home Improvement Stores and Financial Services. Makro has excellent locations of its own, complementary to ours, and is the entry into the Cash & Carry format, which we already operate in Brazil through GIGA. We see attractive opportunities for synergies and strengthening of our operation in the country.”