Cleary Gottlieb represented GBarbosa Comercial, a leading Brazilian supermarket company, and an investor group led by ACON Investments LLC in the sale of GBarbosa to Cencosud S.A. The transaction, which resulted in proceeds of approximately $450 million, closed on November 16.
The sale is the culmination of a two-track process led by Merrill Lynch and UBS Pactual, including a competitive auction involving several multinational strategic bidders and the simultaneous preparation for an initial public offering in Brazil.
GBarbosa is the fourth largest food retailer in Brazil and one of the largest in fast-growing northeast Brazil. It operates 46 supermarkets in addition to hypermarkets and pharmacies. The ACON-led investor group acquired GBarbosa in March 2005 in partnership with the existing management team. Cencosud is a Chilean-based retailer that has expanded across Latin America in recent years to become the second-largest retailer in the region. The purchase of GBarbosa marks Cencosud’s first venture in the Brazilian market.