Back in January, the company said it wanted to sell 117 of its Suburbia locations and for the past eight months, sought out a buyer to make these goals possible. The Suburbia sale completes Walmex’s plan to change up its operations portfolio and focus on its own core business. Mexican department store company El Puerto de Liverpool SAB de CV announced on August 10 that it has acquired the retail chain Suburbia from Wal-Mart de México SAB de CV for a total of Mx19,000 million (approximately US1 billion), pending review by Mexican regulatory agencies. In addition, Liverpool will make lease payments for acquired Suburbia units located in roughly 34 stores where Walmex coexists. Walmex will also receive capital reduction after the deal closes. Included in the transaction were capitalized leases of $1.4 billion and declared dividends of $3.3 billion. “With this agreement, we are fully focused on our core retail business and our objective of doubling our total sales by 2024.” Suburbia and our associates are in good hands to continue to grow and serve our customers,” said Walmart de Mexico CEO Guilherme Loureiro. “The agreement reached with Liverpool is good for our shareholders, our associates and our clients. Walmart agreed to sell Liverpool its 100 percent equity interest in Suburbia business operations, intangible property and real property interests. Walmex said Wednesday that it had sold the clothing chain to El Puerto de Liverpool, a local department store operator, in a deal valued at 19 billion pesos ($1.03 billion). Wal-Mart has struggled in overseas markets, including Britain and China, but Walmex has remained a bright spot with second-quarter revenue growing 11.5% to about $6.93 billion.Walmart de Mexico found a buyer for its Suburbia business. Mexico has Wal-Mart’s largest number of stores outside the United States. Walmex, Mexico’s biggest private sector employer and the country’s largest retailer, posted sales of about $26.35 billion in 2015.Īt the company’s shareholder’s meeting in June, David Cheesewright, head of Wal-Mart’s overseas division, singled out the Mexican market as a top priority. Suburbia, which is profitable, contributed 3% to Walmex’s overall revenue in 2015. It operates 136 stores under the Liverpool name, 131 stores under the Suburbia name, and 27 shopping centers, including Perisur and Galeras Monterrey. Suburbia has 119 stores in 46 cities and is popular with urban shoppers, ranking among Mexico’s top five department stores, according to analysts. de C.V., commonly known as Liverpool, is a mid-to-high end retailer which operates the largest chain of department stores in Mexico. Wal-Mart acquired Suburbia’s parent supermarket chain Cifra in 1997. In Mexico over the past three years, Walmex has sold its Vips restaurant chain to fast-food operator Alsea SAB for $626 million, and its Banco Walmart unit to Mexican billionaire Carlos Slim’s bank Grupo Financiero Inbursa for about $247 million. See also: Is a $3 Billion Sale a Failure? Wal-Mart’s international division, which contributes roughly one-third of the company’s total annual sales of nearly $480 billion, has divested some non-core businesses across Chile, Mexico and Canada in the past two years. The divestiture is part of Wal-Mart’s strategy, announced in 2013, to streamline and sell businesses not central to its overseas operations. Wal-Mart (WMT) has been looking to double sales in Mexico by 2024 by boosting its core business of running discount retail and membership stores, and expanding its fresh food business. Company representatives were not immediately available for comment. Liverpool is one of Mexico’s department store operators, with more than 100 outlets. See also: Walmart Is Giving its Grocery Aisles a Makeover Some Mexican media outlets had speculated the sale could fetch as much as $2 billion. In January, the retailer said it was looking to sell Suburbia without giving a timeframe for completing the sale. Walmex will also receive an additional 3.3 billion pesos in items including declared dividends after the deal closes, it said in a statement. Hi my name Matthew Nelmes I go to school called bank view school in Liverpool I got girlfriend best friend in the world to me and family and am actor sill. Wal-Mart De Mexico y Centroamerica, also known as Walmex, will sell Suburbia with its 119 stores and real estate for 15.7 billion pesos ($852 million) including debt of 1.4 billion pesos.
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