Transaction Éxito - Super Inter
Grupo Éxito is pleased to announce a transaction signed last Saturday, February 8, with Super Inter, Colombia’s largest and most important independent retail player. This deal is still pending and requires authorization from the Colombian antitrust authority.
Following are some of the highlights of the transaction, which is for Éxito to acquire and operate 50 Super Inter stores:
i. A contract whereby Éxito acquires 19 (nineteen) stores, valued at a total of two hundred thousand million pesos (COP $ 200,000 million);
ii. An operating agreement to allow Éxito to operate 31 stores over a 5-year period, for a fixed annual fee of ten thousand million pesos (COP$10,000 million).
iii. A license agreement whereby Super Inter grants the use of its registered brands to Éxito in exchange for an annual compensation payable from the second year of the contract and over a 5 year period. This is equal to two percent (2%) of net sales of the stores identified with the licensed brands, and,
iv. A Call Option Agreement whereby Super Inter grants Éxito the option to acquire in 2015, the 31 business establishments as well as the above-mentioned brands. Grupo Éxito will assess whether the exercise of the call option creates value for the Company and its shareholders, in accordance to market and business conditions at the time.
It is worth mentioning that the closing of this transaction is subject to the non-objection of the Superintendence of Industry and Commerce as a competent authority. Upon approval from this regulator, Éxito will operate a total of 50 stores, all located in the coffee and Valle del Cauca regions. Of these 50, the Company will fully own 19 stores and have the right to operate the remaining 31 under the form of an operating contract. The deal was structured to allow a rapid growth strategy for Grupo Exito with a favourable CAPEX allocation over time.
The deal is in line with Grupo Éxito´s Colombian expansion strategy and it expects that is will continue to strengthen the Company’s market leadership at national and regional levels, allowing the rapid growth and the consolidation of an important part of the market in the coffee and Valle del Cauca regions.
Grupo Éxito believes the transaction will also create significant synergies and opportunities, making it a profitable growth vehicle that brings long-term value creation opportunities for shareholders.
About Super Inter:
Super Inter initiated operations in Cali in 1992 and since then has positioned as one of the leading discount operators in the coffee region and Valle del Cauca region. The Company operates 50 stores throughout 14 cities in the states of Risaralda, Quindío and Valle del Cauca, including their main capitals. Super Inter totalled 17 stores in the coffee region and 33 stores in Valle del Cauca, representing nearly 53,000 square meters of sales areas.
Super Inter is an undisputable independent retail player and ranks fifth at national level in terms of sales after Grupo Éxito, Cencosud, Olímpica and La 14. Twelve-month sales as of December 31, 2013 reached nearly US$425 million.
Please join us in the call to discuss the transaction with Super Inter and also to comment on the launch of Cdiscount Colombia.
Date: Tuesday, February 11, 2014
Time: 11:00 a.m. Eastern Time
11:00 a.m. Colombian Time
Presenting for Almacenes Exito S.A.:
Carlos Mario Giraldo, Chief Executive Officer
Filipe DaSilva, Chief Financial Officer
Stephan Krautwald, Cdiscount Colombia Corporate Manager
Maria Fernanda Moreno, Investor Relation Officer
To participate, please dial:
U.S. Toll Free 877.809.8690
UK Toll Free 0800.028.8438
France Toll Free: 0800.909.322
Colombia Toll Free: 01800.710.1835
International (outside U.S. dial): +706.634.6560
Conference ID Number: 11022832