SAO PAULO (Reuters) - Advent International, the private equity firm that acquired 80 percent of Walmart Inc (WMT.N) ‘s Brazilian operations, is going to invest 1.9 billion reais ($485.66 million) in the existing stores as part of an agreement with the world’s biggest retailer, according to a document published in Brazil’s official gazette.
In June, Walmart announced it sold an 80 percent stake in its Brazilian operations to Advent, partially exiting an underperforming business and taking a non-cash charge of roughly $4.5 billion.
Advent is deploying the money in three installments, the document released last week showed. The first two capital raises will total 750 million reais each. The first was already completed and the second is expected for next year. The remaining amount will be invested by 2021, the document said.
Patrice Etlin, a managing partner at Advent International in Brazil, said in June that the private equity firm would invest billions of reais to convert unprofitable hypermarkets into cash-and-carry wholesale stores. New store openings are not in Advent’s plans.
($1 = 3.9122 reais)
Reporting by Carolina Mandl; Editing by Bill Trott