Chile’s Cencosud Buys Brazil’s G. Barbosa for $430m

Cencosud, the Chilean supermarket chain, said Wednesday that it purchased 100% of Brazil’s G. Barbosa, a chain of supermarkets in the northeastern part of the country, for $380m plus $50m in debt and working capital. Cencosud is buying G. Barbosa from Washington DC-based private equity firm ACON Investments, who bought into the company in 2005. The deal marks Cencosud’s first expansion into Brazil, following acquisitions in Argentina. Itau analysts estimate Cencosud paid 10x EBITDA for 2007 assuming the Brazilian chain makes $1.1bn in net sales at an 8% EBITDA margin, adding at those levels the deal is fairly valued.