PE Deals

CPP Investments acquires minority stake in Colombia’s D1

The deal represents Canada Pension Plan Investment Board's first direct private equity investment in Colombia.

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  • CPP Investments has bought a 19.3% stake in D1
  • D1 is a Colombian “hard discount” food retailer
  • The Colombian market is predicted to grow by 6.1% in 2022 by the OECD

Canada Pension Plan Investment Board has bought a 19.3 percent stake in Colombian “hard discount” food retailer, D1. The investment is priced at $334 million.

“Hard discounters” differ from traditional supermarkets by prioritizing low prices and convenience. The business model has proved successful in Colombia with D1 having opened more than 2,000 stores since it was founded in 2009.

CPP Investments manages the combined funds of the 21 million contributors and beneficiaries of the Canada Pension Plan. It invests across asset classes and is headquartered in Toronto. As of March 31, 2022 the fund totaled about C$415 billion.

“D1 provides an excellent opportunity to capitalize on the behavioral shift occurring in Latin America’s food retail space, where consumers are adopting new ways of shopping that prioritize convenience and price,” said Tania Chocolat, head of active equities Latin America and São Paulo office head at CPP Investments. “”Latin America is a region where several industries are undergoing rapid transformation and Colombia is among the markets we’ve identified as particularly fertile for growth.”