Privalia has reportedly put its Brazil´s business up for sale. The company is one of the largest e-commerce platforms in the country and has reportedly gotten the attention of the Brazilian e-commerce heavy weights.
Privalia is asking 1 billion reais (156.8 million euros) for the deal, about 16 times more than the Brazilian subsidiary´s Ebitda (earnings before interest, tax, depreciation and amortization) in 2020.
After cancelling the initial public offering shares (IPO) in April, Privalia is reported to have put the business up for sale. According to Valor, a leading nationwide financial media, the company would have commissioned Itaú BBA to find suitable buyers. Sources close to Valor say the magazine Luiza, Mercado Livre, Americanas, Renner and Dafiti have all already been approached.
Privalia has been looking for an exit from Brazil for a while
It´s worth recalling that Veepee, the French group that controls Privalia, has been wanting to exit the operations in various South American markets for some time now. It sold Privalia in Mexico to Axo Group early on and looked into various avenues to detach itself from the business in Brazil.
Privalia even filed for an IPO in Brazil last April to later suspend it due to the deteriorating market environment. Before that, Privalia´s controlling group was exploring the sale of its Brazilian operations to other online retailers, although those negotiations didn´t progress much.
Founded in Barcelona in 2006, Privalia began operations in Brazil in 2008. In 2016, it was acquired by the French retailer Veepee and became a wholly owned subsidiary, inclusive of its Brazilian business.
Following a new strategic direction, the controlling company no longer wants to operate in emerging markets, focusing primarily on its European operations across Spain, France and Italy, indicate market sources.
Privalia Brazil´s net revenue grew by 7.1 percent in the third quarter to 728.800 reais, with a total revenue of 1.01 million reais.