Tomaz Matheus and Mariana Cortez; José Paulo Marzagão and Bruno Cerqueira

KLA and T&C assist GPA’s sale and leaseback operation

KLA assisted GPA, owner of the Pão de Açúcar banner, signed a sale and leaseback operation, that is, a purchase and sale commitment for later lease, with 11 of its supermarket stores for an unidentified private fund. Tauil & Chequer Advogados associated with Mayer Brown advised the Fund both on the acquisition and leasing of properties (the “sale & lease back”) and on the financial structuring of the acquisition. The transaction amounts to 330 million reais.

GPA said that the operation is part of the plan to reduce the company’s financial leverage throughout 2023 and 2024, which contributes to the “”reduction of net debt and reinforcement of its capital structure”.

As part of the leverage reduction plan, GPA also intends to conclude the sale of non-strategic assets, implement operational improvements towards the adjusted Ebitda margin target of 8% to 9% in 2024, reduce excess inventory in stores and sell participation of Grupo Éxito after the ongoing segregation process, according to this Monday’s document.

KLA relied on partners Tomaz Matheus (pictured left) and Mariana Cortez (pictured center right), lawyers Carla Fernandes, Juliana Zaccarelli, Verônica Linardi, Giulia Celestino and Giovanna Cunha.

Tauil & Chequer Advogados in association with Mayer Brown relied on partners José Paulo Marzagão (pictured center right) and Bruno Cerqueira (pictured right) and lawyers Maria Carolina Gimenez, Camila Torelli and Eduardo Moraes.