IDB Invest Supports Retail Trade Growth and Employment in Uruguay
IDB Invest, a member of the IDB Group, provided $45 million worth of financing to Ta-Ta S.A., one of Uruguay’s main retailers and employers. The transaction, which comprises a 10-year principal loan for $35 million and a $10 million equity investment, will be denominated in local currency.
This financing will support Ta-Ta in its expansion plan, modernization and improvement of its logistics capacity, and the digitization of its operations, strengthening the growth of the business in the interior of the country, as well as an omni-channel offer of products.
The combination of long-term financing and capital investment will provide Ta-Ta with comprehensive financial support, contributing to its long-term sustainability. To start with, the company expects to create nearly 1,000 new jobs in seven years, helping to reduce unemployment and supporting urban and peri-urban growth in the country. This transaction also seeks the growth of a chain that is committed to lowering the cost of living in Uruguay, making more Uruguayans have access to quality food products at affordable prices, as well as appliances, clothing, accessories, among others. In this way, greater purchases from local Ta-Ta suppliers will be promoted, with consequently greater benefits for the Uruguayan consumer.
This transaction is a catalyst for the development of the private equity investment and financing market in Uruguay, where options have been further limited in the region as a result of the pandemic.
IDB Invest will accompany Ta-Ta in the proper management of its corporate governance and will provide technical advisory for the development of an inclusive and sustainable supply chain program by strengthening small and medium local producers, including women and people with disabilities. This initiative will seek to develop and diversify private label products under the Primero Uruguay program. This advice will contribute to the goal of achieving that 30% of the products sold are own brand, most of which will come from local suppliers with sustainable and inclusive practices.
This operation potentially contributes to four of the Sustainable Development Goals (SDGs): Decent Work and Economic Growth (SDG 8), Industry, Innovation and Infrastructure (SDG 9), Reduced Inequalities (SDG 10) and Responsible Consumption and Production (SDG 12).
About IDB Invest
IDB Invest, a member of the IDB Group, is a multilateral development bank committed to promoting the economic development of its member countries in Latin America and the Caribbean through the private sector. IDB Invest finances sustainable companies and projects to achieve financial results and maximize economic, social, and environmental development in the region. With a portfolio of $13.1 billion in asset management and 385 clients in 25 countries, IDB Invest provides innovative financial solutions and advisory services that meet the needs of its clients in a variety of industries.
Founded in 1956, Ta-Ta is a Uruguayan retail and wholesale marketing chain with various formats. It has 4,982 employees as of June 2020 and is located throughout the Uruguayan territory through its brands Ta-Ta (supermarkets), Multi Ahorro Hogar (electrical appliances), BAS (textile), San Roque (pharmacies), Frontoy (wholesale trade) , WOoW (eCommerce), in addition to the digital businesses of the aforementioned brands. The Company is owned by the De Narváez family and is managed by an agile team with extensive experience. Its vision for 2025 is to achieve omnichannel through its ecosystem of business units in order to serve the Uruguayan consumer in the broadest sense.