Mexico City, Sep 11 (EFE).- Mexican restaurant operator Alsea said it was acquiring the Vips chain from Walmart de Mexico for 8.2 billion pesos ($625 million).
The deal includes the Vips, El Porton, Ragazzi and La Finca brands, Alsea said.
Walmart de Mexico, a unit of U.S. retail giant Walmart Stores Inc., said in June it would sell its restaurant division as part of a move to "streamline operations and focus its efforts on other formats."
The deal is subject to approval by regulators and "other conditions customary in these types of transactions," the two companies said in filings with the Mexican Stock Exchange.
Walmart de Mexico will be paid "rent in the future for the units on properties" that are also occupied by the retailer's stores, Alsea said.
The restaurant division accounted for 1.7 percent of revenues and 1.6 percent of Walmart de Mexico's EBITDA in 2012.
The deal will be financed with long-term bank borrowings totaling 3 billion pesos ($228 million) and a 12-month bridge loan of 5.2 billion pesos ($396 million), Alsea said.
Alsea is the leading operator of fastfood restaurants, coffee shops and casual dining establishments in Latin America.
The company operated 1,768 restaurants in Mexico, Argentina, Chile and Colombia under the Domino's Pizza, Starbucks, Burger King, Chili's, California Pizza Kitchen, PF Chang's, Pei-Wei, Italianni's and other brands at the end of 2012. EFE
(c) 2013 EFE News Services (U.S.) Inc.
Original headline: Mexico's Alsea buys Vips chain for $625 mn
Most Popular Stories
- 15 Myths That Could Ruin Your Hispanic Ad Campaign
- AIG to Create 230 Jobs in Charlotte
- General Motors Names Mary Barra as First Female CEO
- Russia Says Nyet to Canada North Pole Claim
- Bipartisan Negotiators Reach Modest Budget Agreement
- Justin Bieber Visits Typhoon Victims, Plays Concert
- Senate Dems Move Forward With Obama Nominees
- MasterCard to Split Shares, Raise Dividend
- New Obama Aide to Focus on Climate Change
- Obama Nominee Confirmed for D.C. Appeals Court