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.
“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
As per the filing “The total lump sum consideration for the transfer of the business is Rs 362.1 crore.
“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.
According to statement of the company “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”.