JSE-listed Pepkor Group’s acquisition of Brazilian value retailer Avenida will become effective on February 4 and is expected to unlock growth for the group companies in the Latin American market.
Pepkor identified Avenida as a strong strategic fit after conducting more than two years of extensive research into emerging market opportunities.
The Pepkor group, which owns brands such as PEP, Ackermans and Incredible Connection, is entering a new geography with this deal and hopes to yet again successfully replicate its emerging market discount and value business model.
Pepkor previously managed to grow Pepco in Central and Eastern European countries from 13 stores to 3 500 stores. The group currently has the bulk of its retail store footprint in Southern Africa, with more than 5 470 stores operating across ten African countries.
“The combination of Avenida and Pepkor brings together the required capital, retail synergies and the collective know-how to bolster Avenida’s growth in years to come. I believe that together we will be able to build and grow Avenida to become a giant in Brazilian value retail,” says Pepkor CEO Leon Lourens.
Avenida currently operates a diversified product mix for two brands, Lojas Avenida and Giovanna, across 130 stores in Brazil’s retail market, aimed at the low- to middle-income population.