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Grupo Comercial Chedraui Acquires Smart and Final for USD 620m
Friday 14 May 2021

California-based grocery retailer Bodega Latina Corp. (BLC), a subsidiary of Grupo Comercial Chedraui, has agreed to acquire California-based grocery warehouse store, Smart and Final Holdings, Inc. for USD 620m, the company said.

The consideration of USD 620m is via committed financing arranged by Joint Lead Arrangers and Joint Bookrunners BBVA Bancomer, S.A., Institución de Banca Múltiple, Grupo Financiero BBVA Bancomer, BofA Securities Inc. and Scotiabank Inverlat, S.A., Institución de Banca Múltiple, Grupo Financiero Scotiabank Inverlat.

The remaining portion of the purchase price of Smart and Final will be financed through the assumption of certain indebtedness and the use of cash on hand or existing facilities. Concurrent with the transaction, BLC will be refinancing its existing debt.

The acquisition of Smart and Final further scales and expands BLC's US footprint. Smart and Final operates more than 250 stores under two banners: Smart and Final and Smart and Final Extra!, in California, Arizona and Nevada. An additional 16 stores in Northwestern Mexico are operated through a joint venture.

The combination creates a leading diversified chain in Mexico and a multi-format food retail platform in the US, with consolidated pro forma sales in excess of USD 11bn.

RBC Capital Markets, LLC acted as the exclusive financial advisor and Bufete Robles Miaja, S.C. and Sidley Austin LLP as the legal advisors to GCC and BLC. Credit Suisse and Deutsche Bank acted as financial advisors and Morgan, Lewis and Bockius LLP acted as the legal advisor to Smart and Final and Apollo.

Skadden, Arps, Slate, Meagher and Flom LLP and Galicia Abogados, S.C. acted as the legal advisors to the Joint Lead Arrangers and Joint Bookrunners for the acquisition financing.

Bodega Latina Corp. is a subsidiary of Grupo Comercial Chedraui S.A.B. de C.V. (BMV: CHDRAUI), which operates hypermarkets and supermarkets in Mexico and the United States.
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Date Published: 14/05/2021

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