Walmart de Mexico found a buyer for its Suburbia business.
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). Walmart agreed to sell Liverpool its 100 percent equity interest in Suburbia business operations, intangible property and real property interests.
“The agreement reached with Liverpool is good for our shareholders, our associates and our clients. Suburbia and our associates are in good hands to continue to grow and serve our customers,” said Walmart de Mexico CEO Guilherme Loureiro. “With this agreement, we are fully focused on our core retail business and our objective of doubling our total sales by 2024.”
Included in the transaction were capitalized leases of $1.4 billion and declared dividends of $3.3 billion. Walmex will also receive capital reduction after the deal closes. In addition, Liverpool will make lease payments for acquired Suburbia units located in roughly 34 stores where Walmex coexists.
The Suburbia sale completes Walmex’s plan to change up its operations portfolio and focus on its own core business. 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. With this transaction, Walmex now can address other company initiatives and continue to maintain a strong presence in Central America’s retail sector.