Aditya Birla Retail buys up Jubilant hypermarket biz
In yet another consolidation exercise in the domestic retail sector, Aditya Birla Retail Ltd (ABRL) on Tuesday acquired Jubilant Industries’ hypermarket business in a slump sale all cash deal. The deal amount was not specified.
This is the third consolidation announcement in the retail sector within a fortnight. Earlier this month, Aditya Birla Group merged its apparel businesses into a Rs 5,290 crore entity named Aditya Birla Fashion and Retail. A day after Aditya Birla’s merger announcement, Kishore Biyani-led Future Group said it will take control of Bharti Retail in a multi-tier all-stock deal worth Rs 750 crore to create a Rs 15,000-crore behemoth.
In a BSE filing, Jubilant Industries said Aditya Birla will acquire “four hypermarket stores in Bengaluru, India, along with certain specified assets and liabilities, including dedicated employees, contracts, licences, permits, consents and approvals related to Jubilant Agri and Consumer Products Ltd, a wholly-owned subsidiary of Jubilant Industries”. Jubilant’s hypermarket ‘Total Superstore business’ has an aggregate retail footprint of 2.87 lakh <g data-gr-id="32">sq</g>. ft.
“In line with the approved transaction, ABRL will acquire in an <g data-gr-id="33">all cash</g> deal, the leasehold rights for 4 hypermarkets of Total Superstore Business in Bangalore, along with movable and immovable assets,” Aditya Birla said in a statement.
Aditya Birla Group Business Director, Apparel & Retail Business Pranab Barua said: “The acquisition of Total Superstore Business is a good strategic fit for ABRL in terms of its store locations and catchment areas.”
Jubilant Industries said <g data-gr-id="53">transaction</g> is expected to be complete within four months, subject to necessary approvals. On May 3, Aditya Birla Group merged its apparel businesses into <g data-gr-id="26">a entity</g> named ABFRL, which will be the largest pure-play fashion lifestyle company in India.