IG4 Capital acquires 50% stake in Chile’s Adelco

Asset management firm IG4 Capital has acquired a 50% stake in Abastecedora del Comercio (Adelco), the largest distributor of consumer products in Chile, in a joint venture with Grupo Gibraltar.

Posted Friday, December 3rd 2021
IG4 Capital acquires 50% stake in Chile’s Adelco

The investment totals $114 million in investment, with IG4’s contribution totaling $57 million.

Moving forward, IG4 Capital will contribute its expertise to the transformation of Adelco’s operations, the firm said.

Adelco has been in business for 45 years and supplies around 30,000 clients, while also maintaining a presence in Bolivia, Argentina and Peru. The Company owns and operates 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.

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.

The joint venture included a share subscription agreement of Adelco by which Grupo Gibraltar agreed to contribute assets, including its distribution business and several real estate properties, and IG4 agreed to contribute $57 million in cash.

The parties also entered into a shareholders agreement to regulate Adelco's corporate governance and some restrictions to the share transfer.

Grupo Gibraltar was advised on the joint venture and investment by law firm Carey, with a team led by managing partner Jaime Carey, with partners Jorge Ugarte and Manuel Alcalde, tax and audit director Alejandra Risso and associates Pamela Morales, Gonzalo Lucero, Domingo Russi, Pablo Bauer and Nicole Magendzo.

Law firm Barros & Errázuriz acted as counsel to IG4.