Larrain y Associados has helped Chilean retail company Empresas La Polar merge its operations with the homeware subsidiary of local counterpart AD Retail for US$18 million.
Philippi Prietocarrizosa Ferrero DU & Uría (Chile) advised AD Retail and its subsidiary ABCDin in the deal, which closed on 11 January.
Through the transaction, La Polar incorporated AD Retail’s flagship homeware business ABCDin into its operations, adding 70 stores to its retail portfolio.
Following the purchase, La Polar will own and operate around 110 stores across Chile – spanning approximately 167,000 square meters.
La Polar and AD Retail will each hold a 25% stake in the newly merged operations. The remaining 50% will be distributed amongst minority shareholders.
Five representatives from La Polar – including its owner Leonidas Vial – and two from AD Retail, Pablo and Jaime Santa Cruz Negri, will comprise the board of directors for the new operations.
The deal comes several months after La Polar carried out a US$40 million capital increase last May to bolster its finances ahead of the acquisition. Larrain advised the retailer in that deal too.
Founded in 1920, Santiago-headquartered Empresas La Polar is the fourth largest retail company in Chile, following Falabella, Paris and Ripley. The retailer sells a breadth of products including clothing, accessories, furniture and beauty products. It has 43 stores, with 38 located in Chile and a further five located in Colombia.
Santiago-based retail company ABCDin specialises in electronics and homeware products. It is owned by the industry-focused holding company AD Retail. Its parent company also operates a credit card, which offers customers of ABCDin flexible payment solutions for products they purchase from the brand.
Counsel to AD Retail
Philippi Prietocarrizosa Ferrero DU & Uría (Chile)
Partners Federico Grebe, Guillermo Infante and Guillermo Vial, director Constanza Rodríguez and associates Josefina Joannon, Juan Pablo Zegers and Antonio Marinovic
Counsel to Empresas La Polar
Larrain y Associados
Partners Arturo Bulnes, Andrés Silva and Juan de Dios Ferrada and associates Andrés del Sante, Michelle Inzunza, Diego de la Barra
