The retail arm of the Heritage Foods Limited (HFL) became part of the Future Group following the signing of a deal with the Future Retail Limited (FRL) on Monday.
As part of the scheme of acquisition, the HFL will hive off its retail, bakery, agri-sourcing and veterinary care business to a fully-owned subsidiary. Subsequently, all these businesses, except veterinary care, will be merged with the FRL.
The Heritage chain of 124 stores in Hyderabad, Bengaluru and Chennai which cater to over 24 million customers annually, will complement FRL’s network of 379 small format Easy Day stores in the northern cities of India.
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The retail and allied businesses of Heritage Foods posted revenues of Rs. 629.70 crore during 2015-16.
On closure of the transaction, the HFL will own 3.65 per cent of shareholding valued around Rs.295 crore, in FRL through a fresh issuance of shares by the company.
Future Group Chairman Kishore Biyani and HFL Director Lokesh Nara and Executive Director Brahmani Nara unveiled the plan of acquisition.
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