March 01, 2004
Vincent Trius, President of Wal-Mart Brazil, announced today the acquisition of Bompreco, a retail chain in northeastern Brazil with 118 units.
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SÃO PAULO, Brazil - March, 1st, 2004 - Vincent Trius, President of Wal-Mart Brazil, announced today the acquisition of Bompreco, a retail chain in northeastern Brazil with 118 units (hypermarkets, supermarkets and mini markets). Bompreco, formerly owned by Ahold, has more than 20,000 employees, who will be joining forces with Wal-Mart Brazil to continue offering superior services to customers in the Northeast.
Trius also announced that Hipercard, Bomprecos credit card manager and one of Brazils leading credit card companies, has been purchased from Ahold by Unibanco. He said Hipercard will continue to be accepted in all Bompreco stores.
Total value of the transaction is approximately $500 million, Trius said, about $300 million for the Bompreco assets and about $200 million for Hipercard.
"We are very excited to have this opportunity to help more people in Brazil improve their purchasing power," said Trius. "We are also delighted to welcome Bompreco employees as the newest members of our team. This acquisition demonstrates our long-term commitment to the Brazilian market and specifically to the Northeastern part of the country."
With the acquisition, Wal-Mart Brazil will operate 143 units in the country, including 13 Wal-Mart Supercenters, 10 SAMS CLUBS, two Wal-Mart Todo Dias and the 118 Bompreco hypermarkets, supermarkets and mini markets. Trius said Wal-Mart Brazil, would keep its current home office in SÃO Paulo, but would retain Bomprecos headquarters in Recife as its regional base of operations.
Trius said he considered the Bompreco acquisition a perfect fit for the culture of both companies. "Both share the basic principles of respect for the individual, commitment to local communities, striving for excellence, promoting from within, and offering the best quality products to Brazilian customers," he said.
The acquisition gives Wal-Mart Brazil its first stores in the Northeast market. Trius said Wal-Mart and Unibanco would work closely together in managing their new businesses to preserve efficiency and convenience for customers.
Dresdner Kleinwort Wasserstein (DKW) acted as lead financial advisor, and Rio Bravo Investimentos acted as co-advisor to Wal-Mart in this transaction.
About Wal-Mart Brazil
Wal-Mart started operations in Brazil in May 1995, opening a SAMS CLUB store in Sao Caetano do Sul, part of the metropolitan area of SÃO Paulo. In the last eight years, the company has opened 13 Wal-Mart Supercenters, 10 SAMS CLUBS and two Wal-Mart Todo Dias. The stores and clubs are located in the states of Sao Paulo, Paraná, Rio de Janeiro and Minais Gerais. The home office and the Distribution Center are located in the SÃO Paulo metropolitan area. Wal-Mart Brazil has approximately 7,000 associates.
Bompreco is the leading supermarket and hypermarket chain in Brazils Northeast region. In nine states across the Northeast region of Brazil, Bompreco operates a number of different formats including Hiper Bompreco hypermarkets ranging in size between 4,000 and 12,500 square meters, and offering 45,000 lines including clothing and electronics. Bompreco supermarkets have a sales area of up to 3,200 square meters, offering around 10,000 lines. Bompreco also operates mini-markets and Balaio discount stores, as well as a small number of Hiper Magazine stores.
HiperCard is the credit card leader in Brazils Northeast region and the third biggest brand in Brazil. The company has more than two million customers who can use their cards at Bompreco stores and at more than 60,000 stores, restaurants, gas stations and pharmacies.
About Wal-Mart Stores, Inc.
Wal-Mart Stores, Inc. operates Wal-Mart Stores, Supercenters, Neighborhood Markets and SAMS CLUBS in all 50 states. Internationally, the company operates in Puerto Rico, Canada, China, Mexico, Brazil, Germany, United Kingdom, Argentina, and South Korea. The companys securities are listed on the New York and Pacific stock exchanges under the symbol WMT. Last year, Wal-Mart Stores, Inc., contributed more than $140 million to support communities and local nonprofit organizations. Customers and associates raised an additional $70 million at stores and clubs. More information about Wal-Mart can be located on-line at www.walmartstores.com and www.walmart.com. The SAMS CLUB Web site can be accessed at www.samsclub.com. And more information about Wal-Marts Good. Works. community involvement is available online at www.walmartfoundation.org.