IG4 Capital acquires 50% of Adelco for US$57 million and finalizes its first direct investment in Chile
Going forward, the largest distributor of consumer products and owner of a dozen distribution centers in the country plans to restructure its capital, modernize its systems, analyze and optimize internal processes, and hire new executives.
Santiago, November 10, 2021. Asset management firm IG4 Capital today announced the conclusion of an agreement with Inversiones Gibraltar SpA through which it has acquired a 50% stake in Abastecedora del Comercio (Adelco). The operation, which involves an investment of US$57 million on behalf of IG4, is the culmination of a process that began in 2020.
Moving forward, IG4 Capital will contribute its expertise to the transformation of Adelco’s operations. Adelco has been in business for 45 years and today is the largest distributor of consumer products in Chile – supplying about 30,000 clients – while also maintaining a presence in Bolivia, Argentina and Perú. Adelco operates and owns a dozen distribution centers in Chile and also distributes cleaning articles through Memo.
The transaction marks IG4 Capital’s first direct investment in Chile, adding to another relevant milestone for IG4 Capital in the region in addition to its investment in the Peruvian infrastructure company Aenza this year.
With regards to next steps, Adelco announced that it would embark upon a capital restructuring in addition to modernizing its systems, analyzing and improving its processes, and hiring new executives. Additionally, the company finds itself at the beginning of a new phase where it will endeavor to strengthen its digitalization capabilities and create its own digital platform.
According to IG4 Capital, “logistics play a key role in the commercial value chain, and Adelco is well-positioned to capture a significant portion of that value. We see an enormous opportunity for the future of the company through which it will contribute towards the modernization of its channels. Adelco will continue to be a relevant actor for mom & pop shops, offering better and cheaper products that are designed for its clients’ needs and that arrive in a timely manner, helping them grow their businesses. Our expectation is to first strengthen our Chilean operations and then continue on to Peru and the other countries in which Adelco is present”.
About IG4 Capital
Founded in 2016, IG4 Capital is a fund manager with offices in Sao Paulo, London, Santiago, Lima and Madrid. IG4 Capital has been investing, through its first two funds, in companies backed by hard assets but which require financial and or operational restructuring (known as “special opportunities”) and seeks to improve its portfolio companies via implementing best-in-class ESG standards. For more information, visit www.ig4capital.com
