French retailer Casino Group has agreed to sell its subsidiary Vindémia to compatriot automotive distribution and retail company GBH for a total consideration of €219m ($245.09m).
Reunion Island-based Vindémia operates multi-format stores, such as hypermarkets, supermarkets, cash and carry, and proximity.
Gradually acquired by Casino Group between 2001 and 2007, the retail chain currently has presence across the Indian Ocean covering Reunion Island, Madagascar, Mayotte, and Mauritius.
GBH will continue to operate Vindémia under the same brand within its retail division. GBH is expected to sell stores to a third party under the terms of the deal in anticipation of possible concerns from the Competition Authority.
The deal is part of the company’s strategy to slash debts and is expected to close after consultation with employee representative bodies.
Established in 1960, GBH is a family-owned group that focuses on two main businesses, including automotive distribution and retail.
Earlier this month, the French retailer closed a deal to sell three hypermarkets, four Casino supermarkets and one Leader Price store in France to two major retailers for €39m.
The company signed separate purchase agreements with Leclerc members and Lidl in January and February to sell these assets.
As part of this deal, the members of Leclerc acquired hypermarkets of Cholet, Roubaix and Rennes, and Lidl purchased four Casino supermarkets and one Leader Price store.
In May this year, Casino Group concluded the sale of its three hypermarkets to the members of cooperative society and hypermarket chain Groupement E. Leclerc for €38m ($42.30m).
The three hypermarkets acquired are located outside Paris, in the towns of Castelnaudary, Anglet and Castres.