Kishore Biyani-led Future Group on Monday said it signed a definitive agreement to acquire city-based dairy and retails enterprise, Heritage Foods Ltd, in an all stock deal. Heritage Foods, which currently owns 124 retail outlets under the brand name ‘Heritage Fresh’, will get 3.65 per cent share-holding in Future Retail through fresh issuance of shares.
“We have signed a definitive agreement with Heritage Foods. The consolidation of Heritage small format stores bring us closer to the homes of customers in the three metros in Southern India.Scale plays an important role in retail and this forms part of our strategy of aggressively expanding our small stores network to 3,000 nationally by 2021 to service daily and weekly needs of customers,” Biyani said in a press conference.
Heritage Foods was promoted by the family members of Andhra Pradesh Chief Minister N Chandrababu Naidu.
As part of the scheme of arrangement for the acquisition, Heritage Foods will spin off its retail, bakery, agri-sourcing and veterinary care businesses into a fully-owned subsidiary.