Wal-Mart Buys Stake In Central American Firm
by September 26, 2005 12:00 am 127 views
Wal-Mart Stores Inc. of Bentonville said it will buy a 33.3 percent stake in Central American Retail Holding Co. for an undisclosed price from Dutch retailer Royal Ahold NV. Wal-Mart will make additional investments in CARHCO over time toward getting a majority stake in the company.
The Paiz family of Guatemala and Costa Rica’s Corporacion de Supermercados Unidos own the remaining 66.6 percent of the company.
“We believe our investment will add strength to the partnership by helping to keep prices low for consumers and will offer new opportunities to suppliers in the region for additional business development,” John Menzer, CEO of Wal-Mart’s International Division said via a press release.
CARHCO has 363 supermarkets and other stores in Guatemala (120), El Salvador (57), Honduras (32), Nicaragua (30) and Costa Rica (124), with 23,000 employees. The company had $2 billion in sales last year, Wal-Mart said.
Ahold, the owner of U.S. supermarkets Giant-Landover and Stop & Shop, has been selling off some of its holdings since an accounting scandal.