Chedraui Completes the Acquisition of Arteli Discount Stores

Grupo Comercial Chedraui has successfully acquired Arteli, a discount store founded in Tampico, Tamaulipas.
This investment is part of the chain's plan to strengthen its leadership in the northeastern region of Mexico and the Huasteca region, expanding its presence with the control of 36 units.

The stores acquired are located in Tamaulipas, Veracruz, Hidalgo and San Luis Potosí. Photo: BigStock

12/16/2022

Grupo Comercial Chedraui has finalized the acquisition of Arteli, a discount store founded in Tampico, Tamaulipas. This investment is part of the chain's plan to gain greater leadership in the northeast of the country and the Huasteca region, expanding its presence by taking control of 36 units.

According to the information provided to the Mexican Stock Exchange (BMV), the acquired stores are located in Tamaulipas, Veracruz, Hidalgo, and San Luis Potosí. "Arteli will allow us to better serve customers in the region and strengthen our value proposition," detailed José Antonio Chedraui, CEO of the brand. In a statement, Chedraui announced that this transaction will benefit earnings per share and improve the consolidated return on invested capital (ROIC) of the company from the first year of operation.

Furthermore, it was stipulated that there was no need to increase debt, as it will be funded with the available cash on the company's balance sheet. Arteli stores will be adapted to the Chedraui formats. Arteli is a supermarket chain with over 40 years of operation, projected to reach sales of around 4.9 billion Mexican pesos by the end of 2022. Its stores operate under three different formats: Arteli, Arteli Express, and Aká Superbodega.

The statement indicated that these formats will be maintained and adapted to the Chedraui formats, including Tiendas Chedraui, Supercitos, and Superchedraui. In addition to the 36 stores, the transaction includes a Distribution Center located in Tampico and a processing plant for bread, tortillas, and meats. These properties will complement Chedraui's infrastructure and enable synergies by providing services to the existing chain stores.

"Our priority is to ensure business continuity, so we will maintain existing commercial and labor agreements, carrying out an orderly integration to identify best practices in both businesses and materialize the synergies that this operation can provide," added the CEO. It's worth noting that this is not the first acquisition Chedraui has made to strengthen its position in the American market. In mid-2021, they acquired the wholesale club Smart & Final in the United States. This integration boosted the company's net income, allowing them to reach 1.467 billion Mexican pesos during the 3rd quarter of 2022, a 63.7% increase compared to the same quarter in 2021.

The Veracruz-based company has positioned itself as the fastest-growing chain with a 16.2% growth in the self-service operation in Mexico. In the same period, Walmart grew by 10.8%, La Comer by 9%, and Soriana by 6.4%. The growth of the chains affiliated with the National Association of Supermarkets and Department Stores (ANTAD) was 10.5%.

Read the full article in Spanish: Link

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