On July 19th, the Brazilian bookstore Livraria Cultura announced the purchase of the Brazilian branch of Fnac Darty. The value of the transaction has not been published.
According the French group, the deal will allow Livraria Cultura to diversify its portfolio of products, due to the variety of items sold by Fnac. Head of the administrative board of Livraria Cultura, Pedro Herz, said the conclusion of the sale should be held “in the upcoming weeks.”
Fnac’s operation in Brazil consists of 12 stores, in seven states, on top of its online presence, while Livraria Cultura has 18 stores, across 8 states. The Fnac stores will not be rebranded, as the brand has been licensed to Livraria Cultura. Moreover, the group aims to hold a capitalization, in order to improve its position in the market, but the value targeted has not been announced yet.
Fnac has had stores in Brazil since 1999 and employs approximately 550 people. According to the French group, the operation in the country is responsible for 2% of its annual worldwide sales, which totalled €7.4 billion in 2016. Livraria Cultura was established in 1947, and in 2016 had profits of 380 million reais.
Two Brazilian law firms worked on the deal. Veirano Advogados advised Fnac, whilst Souza Cescon Advogados assisted Livraria Cultura.