Cencosud successfully completes the process for the acquisition of 67% of The Fresh Market Holdings, Inc.

• As of July 5, 2022, Cencosud enters the American supermarket market through the consolidation of The Fresh Market operation.
• Cencosud financed the purchase of The Fresh Market with its own cash flows and a 12-month bank loan for USD 300 million.

Santiago, Chile, July 5, 2022.- Cencosud (BCS: CENCOSUD), a retail leader in South America with operations in Chile, Argentina, Brazil, Peru, and Colombia, announces that having met the conditions contemplated in the agreement dated May 2022, and specifically obtaining the authorization of the Free Competition Authority of the United States of America, Cencosud S.A., through its subsidiary Cencosud Internacional SpA, has acquired 67% of the share ownership of TFMH.

Cencosud financed the purchase of the new subsidiary both with its own resources and through a loan of USD 300 million for 12 months with HSBC Singapore Branch and Bank of America.

As of this same date, the subsidiary The Fresh Market, Inc. refinanced its post-acquisition debt of USD $597 million, for a 5-year term, with the guarantee of Cencosud S.A. This is through a syndicated loan, led by JPMorgan Chase Bank, N.A. with a SOFR (Secured Overnight Financing Rate) +185 bps (all in) rate structure. This process achieved an oversubscription of twice the size of the offer.

The Fresh Market is a premium specialty supermarket chain, focused on high-quality fresh products and an outstanding and differentiated shopping experience, recognized in 2021 and 2022 by USA Today’s 10 Best Readers' Choice Awards as “Best Supermarket in America”. It operates in 22 states in the United States, mainly Florida, North Carolina (where its headquarters is located), Virginia, and Georgia, through 160 stores. It has approximately 10,159 employees, and its annual gross sales exceed USD 1.9 billion.

For all the above, it is expected that this acquisition will have a favorable effect on the consolidated results of Cencosud S.A., taking advantage of commercial, technological, and e-commerce synergies, among others. In addition, through this new subsidiary, Cencosud achieves, among other benefits, access to a market with a higher purchasing power compared to Latin America, direct operation in a capital market of great depth, and obtaining a relevant portion of its income and EBITDA in a defensive currency such as the dollar, without being able to quantify these effects at this date accurately.