Pátria buys Bahian chain Atakarejo – 10/03/2023 – Market

Investment manager Pátria announced this Tuesday (3) the purchase of the Bahian chain Atakarejo, owner of 28 stores in Salvador, the metropolitan region and the interior of the state, in addition to two distribution centers.

The value of the operation was not disclosed. The founder of Atakarejo, businessman Teobaldo Costa, continues to lead the chain, as an executive and minority partner. His participation was not revealed.

The Atakarejo chain closed 2022 with net revenue of R$3.2 billion, an increase of 23% over the previous year. The retailer achieved a net profit of R$29.7 million in the period, an increase of 61% over 2021.

According to Pátria Investimentos, the acquisition marks the manager’s entry into the sector, which offers wholesale prices at retail and, according to consultancy NielsenIQ, is the fastest growing in the country.

For every 100 households in Brazil, 73 buy at wholesale stores, while 62 shop at large supermarkets. From January to June this year, wholesale sales grew 16.8% compared to the same period of the previous year and the channel accounted for 20% of total retail sales, reports NielsenIQ.

The sector has even been attracting the middle and upper middle class to its stores. Among the biggest competitors in this segment are Assaí (owned by Pão de Açúcar), Atacadão (owned by Carrefour) and Grupo Mateus, operating in the North and Northeast.

“The cash and carry channel continues to grow, reaching an increasing number of Brazilian homes”, says Alfredo Costa, general director of NIQ in Brazil. “Today, it is the most celebrated channel, with the largest share of operations in Brazilian homes, even though it has less than 2,000 stores in the country.”

The conclusion of the deal is still subject to approval by Cade (Administrative Council for Economic Defense).

According to Pátria, “the manager has planned robust investments to expand the network, with the opening of new stores, team development, efficiency gains and to explore potential synergies with other businesses connected to the retail market and excellent service to companies and consumers”, he informed, in a note.

Pátria manages more than R$140 billion in assets and has already invested resources in the food and beverage sector, with Junior Alimentos, Frooty, Delly’s and Plurix (which includes Boa Supermercados, Superpão and Avenida Supermercados).

“It is a segment that has a connection with the businesses in which Pátria already operates, managing assets with solid growth and great operational efficiency, generated by the alliance between investments in technology and innovation and the engagement of a qualified team”, said, in a note, Luis Felipe Cruz, partner at Pátria responsible for new private equity investments in Brazil.