Advent International plans to acquire majority stake in Walmart Brazil

In a story brought to our attention by LAVCA, Advent International, one of the world’s most experienced private equity investors, has announced that it will acquire an 80% stake in Walmart‘s Brazilian operations. Walmart Inc. will retain the other 20% stake.

This acquisition is meant to help strengthen and streamline Walmart Brazil’s operations to modernize the business and provide a better customer experience. Advent International has been operating in Brazil since 1997 and has invested in over 30 Brazilian companies focused on retail, consumer and leisure segments. Brazilian investments make up almost half of Advent’s international portfolio, which includes 75 companies from 22 countries.

Said one of the Managing Partners for Advent in Brazil, Patrice Etlin, in the original press release:

“We have been in Brazil for over 20 years and are excited about this partnership with one of the country’s leading retailer…We believe that with our local market knowledge and retail expertise we can position the company to generate significant results and reach new levels of success in Brazil.”

The decision for this partnership was made after reviewing Walmart’s international portfolio, and Walmart Brazil expects to see a net loss of US$4.5B this year as a result of the transaction.

Read more about Walmart Brazil:

Wall Street Journal coverage

Reuters coverage

TechCrunch coverage

 

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