Sanjiv Goenka Group’s Spencer’s Retail said it will acquire Godrej Industries’ grocery chain Nature’s Basket for $43 million (around Rs 300 crore). Nature’s 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.