Actis Invests US$58 Million in Supermarket Chain Companhia Sulamericana de Distribuicao in Inaugural Brazilian Investment

SAO PAULO, September 3, 2010 /PRNewswire/ -- Actis, the global emerging markets private equity specialist, has invested US$58m in Companhia Sulamericana de Distribuicao ('CSD'), the operator of Brazilian supermarket chains Sao Francisco and Cidade Cancao. CSD is one of the three major supermarket retailers in Parana state, and is among the top 25 supermarket operators in Brazil. The investment marks Actis's first Brazilian investment to date.

With the new capital injection, CSD will implement an expansion plan based on the opening of new stores in the states of Parana, and Mato Grosso do Sul. Actis will hold a significant minority stake, working in partnership with the founding families of Sao Francisco and Cidade Cancao, Nogaroli and Cardoso, who have successfully grown their businesses over the last 30 years.

CSD Chairman, Jefferson Nogaroli said, "Actis's emerging market focus, experience in the food retail sector, and long term investment approach were essential factors in our decision to partner with them. Our goal with this partnership is to drive CSD to the front line of innovation in food retail in Brazil, offering the best to our customers, with new stores, products and services."

The objective is to double CSD's store footprint over the next three to five years. This accelerated growth is expected to create more than 3,000 new jobs in the region. Two new stores will be inaugurated by the end of 2010 in the cities of Arapongas and Umuarama. CEO, Carlos Tavares Cardoso commented, "Our current and future customers can now count on an even broader supply of quality products and services, aligned with the concept of modern retail adopted by Cidade Cancao and Sao Francisco".

Paul Fletcher, Senior Partner at Actis, said, "Our investment in CSD represents an important milestone for Actis and reflects our commitment to the emerging market consumer story in Latin America. This is a highly auspicious time for Brazil with rising income and increasing access to credit; over 20 million Brazilians have entered the middle class over the last 5 years."

Patrick Ledoux, co-head of Actis in Latin America, said, "The story of the Nogaroli and Cardoso families is one of success and entrepreneurship; our confidence in their management skills was fundamental to our choice of CSD as Actis's first investment in Brazil." He adds that Actis will actively assist CSD in this new phase of growth with its local knowledge and deep experience in retail investments in other emerging markets.

About Actis

Actis is a leading private equity investor in emerging markets with a growing portfolio of investments in Asia, Africa and Latin America; it currently has US$4.8bn funds under management. Actis has over 100 investment professionals on the ground in 9 offices worldwide.

Actis is committed to promoting the sustainable growth of the private sector in the emerging markets. Its aim is to ensure that the capital it raises and manages makes a lasting, tangible and positive difference, by creating opportunity both for the companies in which it invests, as well as their stakeholders.

http://www.act.is

About Companhia Sulamericana de Distribuicao (CSD)

CSD operates the supermarket chains Cidade Cancao and Sao Francisco. With headquarters in Maringa, Brazil, CSD has 28 stores in 11 cities in the states of Parana and Mato Grosso do Sul. Jefferson Nogaroli is CSD's chairman, and Carlos Tavares Cardoso is the Chief Executive Officer.

The states of Parana and Mato Grosso do Sul are located in the northern part of the south of Brazil: close to the states of Sao Paulo and Santa Catarina, and also to Argentina and Paraguay.

    For further information please contact:

    Sao Paulo, Brazil:
    Vanessa Godoy
    Printec Comunicacao
    +55-11-5182-1806
    [email protected]

    London, UK:
    Claire Davies
    Actis
    +44(0)207-234-5115
    [email protected]

SOURCE Actis LLP