Chile-based retailer Cencosud is expanding its Argentinian presence with the acquisition Makro and Basualdo supermarkets for $122.5 million (€119.3 million).
The final price may be adjusted based on net debt, working capital, and other conditions established in the contract, the company noted.
This acquisition, which marks Cencosud's entry into the wholesale cash-and-carry market in Argentina, will be financed from existing resources.
Cash-And-Carry Stores
Makro and Basualdo, with over 35 years of experience in Argentina, operate 28 mostly company-owned wholesale cash-and-carry stores in prime locations across 12 cities and 10 provinces, including major cities like Buenos Aires, Santa Fe, and Córdoba.
Makro also has a portfolio of popular private-label brands.
Cencosud CEO Rodrigo Larraín expressed excitement about the growth opportunity, highlighting the complementary locations and synergies with their existing Argentinian operations, as well as their experience with the cash-and-carry format in Brazil through Giga.
Cencosud anticipates 2025 revenues of $17.95 billion (€17.49 billion), adjusted EBITDA of $1.87 billion (€1.82 billion), and an adjusted EBITDA margin of 10.4%, driven by double-digit margins in key markets such as Chile, the United States, Peru, and Argentina, as well as expected improvements in performance in Colombia and Brazil.
Investment Plan
The company is also investing $610 million (€594 million) in 2025, a 16% increase compared to 2024. The plan foresees the opening of around 24 new supermarkets, 12 of which will be The Fresh Market stores in the US, adding 44,000 square metres of sales space.
The resources will also be used for store remodeling, shopping centre expansions, digital advancements, and logistics improvements.
Cencosud operates in Argentina, Brazil, Chile, Peru, Colombia, and the United States, with additional offices in China and Uruguay.
The company employs a multi-format strategy across various business lines, including 1,129 supermarkets, 117 home improvement stores, 48 department stores, and 67 shopping centres, in addition to financial services.
