Spencer's Retail to acquire Nature's Basket for Rs 300 crore from Godrej Industries

Spencer's Retail will acquire Nature's Basket's entire share capital comprising 44,58,30,000 fully paid-up equity shares of Rs 10 each.

Published: 17th May 2019 07:28 PM  |   Last Updated: 17th May 2019 07:28 PM   |  A+A-

By PTI

NEW DELHI: Sanjiv Goenka Group's Spencer's Retail Friday said it will acquire Godrej Industries' grocery chain Nature's Basket for Rs 300 crore.

Natures Basket's acquisition will make Spencer's Retail a national player, giving it access to the western parts of India through its 36 stores in prime locations in Mumbai, Pune and Bangalore.

"The Board of Directors of the company, has approved a proposal for acquisition of entire 100 per cent stake held by Godrej Industries Ltd in its wholly owned subsidiary Nature's Basket Ltd, subject to requisite approval of the shareholders of the company and execution of a share purchase agreement for undertaking the transaction contemplated above.

"This acquisition will bring in many synergies in Spencer's business and fits in well with Spencer's omnichannel strategy," Spencer's Retail said in a regulatory filing.

Spencer's Retail will acquire Nature's Basket's entire share capital comprising 44,58,30,000 fully paid-up equity shares of Rs 10 each.

Spencer's Retail said the consideration for the proposed transaction is Rs 300 crore (+/- any agreed adjustments) in terms of the SPA to be executed with Natures Basket and Godrej Industries, and subject to the requisite approval of the shareholders and consumation of the transaction.

Natures Basket Limited (NBL), a 100 per cent subsidiary of Godrej Industries and reported turnover of Rs 338.28 crore for the year 2018-19.

The company sells various food products and beverages through its retail stores and online platform.

Kolkata-based Spencer's Retail, part of RP Sanjiv Goenka Group, is a multi-format retailer that provides products across categories such as food, personal care, fashion, home essentials, electrical and electronics.

"Looking forward, we realised that to further unlock the immense potential of this brand and to grow it to even greater heights, we need to pass on the torch to owners who have prioritised retail in their portfolio strategy and have the relevant ecosystems to take the business to the next level," said Tanya Dubash, Executive Director and Chief Brand Officer, Godrej Group.

Dubash said Spencer's Retail is very keen to further strengthen the brand and strongly accelerate the growth of the business.

"Both Spencer's and Nature's Basket are positioned as experiential grocery retailers, and that is the first of many synergies that this acquisition brings.

Nature's Basket has a strong portfolio of private label brands which has huge traction with its consumers.

We believe there is huge potential to expand this to Spencer's stores," said Shashwat Goenka, Sector Head - Retail & FMCG, RP Sanjiv Goenka Group.

Stay up to date on all the latest Business news with The New Indian Express App. Download now
(Get the news that matters from New Indian Express on WhatsApp. Click this link and hit 'Click to Subscribe'. Follow the instructions after that.)

Comments

Disclaimer : We respect your thoughts and views! But we need to be judicious while moderating your comments. All the comments will be moderated by the newindianexpress.com editorial. Abstain from posting comments that are obscene, defamatory or inflammatory, and do not indulge in personal attacks. Try to avoid outside hyperlinks inside the comment. Help us delete comments that do not follow these guidelines.

The views expressed in comments published on newindianexpress.com are those of the comment writers alone. They do not represent the views or opinions of newindianexpress.com or its staff, nor do they represent the views or opinions of The New Indian Express Group, or any entity of, or affiliated with, The New Indian Express Group. newindianexpress.com reserves the right to take any or all comments down at any time.

flipboard facebook twitter whatsapp