Chilean holding company Cencosud has reached an agreement to buy 67% of the premium supermarket The Fresh Market (TFM), which will allow it to enter the US market.
Matías Videla, general manager of Cencosud, said: “Cencosud must disburse approximately US$676 million to acquire 67% of TFM, an amount that may be adjusted based on cash, debt, working capital and certain other variables of TFM at the date on which the transaction becomes effective. As usual in this type of operation, the closing of the transaction is subject to the fulfilment of certain conditions, among them, obtaining authorisation from the US free competition authority.”
The Fresh Market is positioned as a premium specialty supermarket with a focus on high-quality fresh products and an outstanding and differentiated shopping experience, recognized in 2021 and 2022 by USA Today’s 10 Best Readers’ Choice Awards as “Best Supermarket in America”. It operates in 22 states in the United States, mainly Florida, North Carolina (where its headquarters are located), Virginia and Georgia, through 160 leased stores. It has approximately 10,159 employees, and its annual gross sales exceed US$1.9 billion.
“By virtue of this acquisition, Cencosud will enter the United States market, a country in which it does not yet operate. The acquisition of 67% of TFM will be carried out mainly with its own resources, and part of the payment will be will be used to reduce said company’s debt, so that Cencosud will maintain a solid financial position,” said Videla.