Actis, the emerging markets private equity firm, has invested USD58m in Companhia Sulamericana de Distribuicao, the operator of Brazilian supermarket chains Sao Francisco and Cidade Cancao.
CSD is one of the three major supermarket retailers in Parana state, and is among the top 25 supermarket operators in Brazil.
The investment marks Actis’s first Brazilian investment to date.
With the new capital injection, CSD will implement an expansion plan based on the opening of new stores in the states of Parana, and Mato Grosso do Sul.
Actis will hold a significant minority stake, working in partnership with the founding families of Sao Francisco and Cidade Cancao, Nogaroli and Cardoso, who have grown their businesses over the last 30 years.
CSD chairman Jefferson Nogaroli says: "Actis’s emerging market focus, experience in the food retail sector, and long term investment approach were essential factors in our decision to partner with them. Our goal with this partnership is to drive CSD to the front line of innovation in food retail in Brazil, offering the best to our customers, with new stores, products and services."
Paul Fletcher, senior partner at Actis, says: "Our investment in CSD represents an important milestone for Actis and reflects our commitment to the emerging market consumer story in Latin America. This is a highly auspicious time for Brazil with rising income and increasing access to credit; over 20 million Brazilians have entered the middle class over the last five years."
