You are here: Home » News-IANS » Business-Economy
Business Standard

M&M sells its franchise business to FirstCry

IANS  |  Mumbai 

(M&M) on Saturday said it would sell its franchise business to FirstCry for Rs 362.1 crore on a slump sale basis.

"A business transfer agreement has been executed by and between Mahindra Retail Pvt Ltd (MRPL), a subsidiary of the company, BrainBees Solutions Private Ltd and founder of FirstCry to transfer the franchise division of MRPL (BabyOye) as a going concern on a slump sale basis to FirstCry," the company said in a filing to BSE.

"The total lump sum consideration for the transfer of the business is Rs 362.1 crore," the filing said.

"In terms of the structure of the transaction, two companies have consolidated their operations, with Mahindra Retail selling its franchise business to FirstCry, and operating all company stores under a FirstCry master franchise agreement," the company said in a statement.

The Board of Directors of the two companies have already approved this strategic move.

The baby and kids focused Omni channel player additionally raised $34 million of new equity capital from the Mahindra Group, PE fund Adveq, Kris Gopalakrishnan and participation from all existing shareholders, it said.

"The merged entity will conduct its business under the brand name FirstCry.com - A FirstCry Mahindra Venture. It will have a parent base of over 4 million, a footprint of over 300 stores spread across 125 cities," the statement said.

MRPL, which acquired Babyoye.com in February 2015, has over 120 stores across the country.

--IANS

bdc/vd

(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)

RECOMMENDED FOR YOU

M&M sells its franchise business to FirstCry

Mahindra & Mahindra (M&M) on Saturday said it would sell its franchise business to FirstCry for Rs 362.1 crore on a slump sale basis.

(M&M) on Saturday said it would sell its franchise business to FirstCry for Rs 362.1 crore on a slump sale basis.

"A business transfer agreement has been executed by and between Mahindra Retail Pvt Ltd (MRPL), a subsidiary of the company, BrainBees Solutions Private Ltd and founder of FirstCry to transfer the franchise division of MRPL (BabyOye) as a going concern on a slump sale basis to FirstCry," the company said in a filing to BSE.

"The total lump sum consideration for the transfer of the business is Rs 362.1 crore," the filing said.

"In terms of the structure of the transaction, two companies have consolidated their operations, with Mahindra Retail selling its franchise business to FirstCry, and operating all company stores under a FirstCry master franchise agreement," the company said in a statement.

The Board of Directors of the two companies have already approved this strategic move.

The baby and kids focused Omni channel player additionally raised $34 million of new equity capital from the Mahindra Group, PE fund Adveq, Kris Gopalakrishnan and participation from all existing shareholders, it said.

"The merged entity will conduct its business under the brand name FirstCry.com - A FirstCry Mahindra Venture. It will have a parent base of over 4 million, a footprint of over 300 stores spread across 125 cities," the statement said.

MRPL, which acquired Babyoye.com in February 2015, has over 120 stores across the country.

--IANS

bdc/vd

(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)

image
Business Standard
177 22

M&M sells its franchise business to FirstCry

(M&M) on Saturday said it would sell its franchise business to FirstCry for Rs 362.1 crore on a slump sale basis.

"A business transfer agreement has been executed by and between Mahindra Retail Pvt Ltd (MRPL), a subsidiary of the company, BrainBees Solutions Private Ltd and founder of FirstCry to transfer the franchise division of MRPL (BabyOye) as a going concern on a slump sale basis to FirstCry," the company said in a filing to BSE.

"The total lump sum consideration for the transfer of the business is Rs 362.1 crore," the filing said.

"In terms of the structure of the transaction, two companies have consolidated their operations, with Mahindra Retail selling its franchise business to FirstCry, and operating all company stores under a FirstCry master franchise agreement," the company said in a statement.

The Board of Directors of the two companies have already approved this strategic move.

The baby and kids focused Omni channel player additionally raised $34 million of new equity capital from the Mahindra Group, PE fund Adveq, Kris Gopalakrishnan and participation from all existing shareholders, it said.

"The merged entity will conduct its business under the brand name FirstCry.com - A FirstCry Mahindra Venture. It will have a parent base of over 4 million, a footprint of over 300 stores spread across 125 cities," the statement said.

MRPL, which acquired Babyoye.com in February 2015, has over 120 stores across the country.

--IANS

bdc/vd

(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)

image
Business Standard
177 22

Upgrade To Premium Services

Welcome User

Business Standard is happy to inform you of the launch of "Business Standard Premium Services"

As a premium subscriber you get an across device unfettered access to a range of services which include:

  • Access Exclusive content - articles, features & opinion pieces
  • Weekly Industry/Genre specific newsletters - Choose multiple industries/genres
  • Access to 17 plus years of content archives
  • Set Stock price alerts for your portfolio and watch list and get them delivered to your e-mail box
  • End of day news alerts on 5 companies (via email)
  • NEW: Get seamless access to WSJ.com at a great price. No additional sign-up required.
 

Premium Services

In Partnership with

 

Dear Guest,

 

Welcome to the premium services of Business Standard brought to you courtesy FIS.
Kindly visit the Manage my subscription page to discover the benefits of this programme.

Enjoy Reading!
Team Business Standard