CHILE – Ahead of Amazons announced entry into the Chilean market, SACI Falabella informed on August 1st of its acquisition of Linio, the main marketplace operators in the region, for a value of USD 138 million.
Linio, which operates in eight countries, totaled USD 137 million in annual sales (net merchandise value), and has relevant presence in Mexico, Colombia, Peru, Argentina and Chile, in addition to having offices in the USA and China.
“With this acquisition, the Company takes another step towards its goal of consolidating its position as a leading e-commerce in the region. Linio will boost sales of Falabella Retail, Sodimac and Tottus, becoming a common display for the products of the group's companies, which will also continue to strengthen their own digital e-commerce sites. In addition, Linio will allow us to offer a broader assortment from different suppliers that already sell through its platform” said Gaston Bottazzini, CEO of SACI Falabella. Linio will maintain its brand and teams. Falabella will enhance this company, by adding its own capabilities: logistics, store network, access to suppliers, product assortment, customer knowledge and ease of payment methods. Gonzalo Somoza, corporate general manager of Falabella Retail, will be responsible for leading the collaboration efforts.
To finance this operation and accelerate investments in logistics and technology, together with the development of Ikea in Chile, Peru and Colombia, and to increase its ownership in Construdecor (Dicico Brazil), SACI Falabella will call for a Shareholders' Meeting to propose a capital increase of 84,3 million shares, equivalent to approximately USD 800 million. To support this capital increase, the Controlling Shareholders have confirmed that they will subscribe approximately USD 100 million, leaving the remainder to be placed between minority shareholders and the market.
