June 23 (Bloomberg) -- Maquina de Vendas SA, Brazil’s second-biggest retailer created by a merger this year, agreed to buy electrical-appliances chain City Lar, increasing the number of its stores to 750.
Maquina de Vendas will operate under City Lar’s brand in the Brazilian states of Mato Grosso and Mato Grosso do Sul, and in the Northern region, according to an e-mailed statement today. The company, which didn’t disclose the financial terms of the deal, said it won’t make cuts in City Lar’s workforce.
“We will preserve the essence of the business, which is the brand, the team and the knowledge of the region,” Maquina de Vendas Chief Executive Officer Ricardo Nunes said in the statement.
The combined business will have annual sales of 6.1 billion reais ($3.4 billion), bringing Maquina de Vendas closer to its goal of reaching 1,000 stores and 10 billion reais annual sales by 2014. The closely held company was created in March through the merger of Insinuante and Ricardo Eletro.
City Lar, based in Cuiaba, Brazil, was founded in 1979 by Sidney Gasques, whose first business was travelling from city to city in a Volkswagen microbus to sell stickers. The company now has 200 stores in 81 cities and 5,200 employees.
Pao de Acucar became Brazil’s biggest retailer last year after acquiring Casas Bahia and Globex Utilidades SA. The Sao Paulo-based retailer has combined sales of 40 billion reais annually and more than 1,700 stores.
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