Grupo Gigante has agreed to acquire RadioShack Mexico for $31.8 million, aiming to leverage its prior experience and revitalize the brand amidst a transforming retail landscape.
Target Information
Grupo Gigante has reached an agreement to acquire RadioShack Mexico for $31.8 million. This transaction involves a total of 251 stores that, as of the end of 2014, generated sales amounting to 1.747 billion pesos. The acquisition will be financed through the operational cash flow of Office Depot Mexico, ensuring that there will be no increase in Gigante's debt levels.
The purchase price also accounts for a reduction of $20 million from existing liabilities between both companies owed to RadioShack Mexico. Finalization of the acquisition is pending approval from the Federal Economic Competition Commission (CFCE) in Mexico and the Bankruptcy Court in Delaware, United States.
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Industry Overview
The consumer electronics retail sector in Mexico has seen significant fluctuations, particularly with the increasing competition from online retailers and big box stores.
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Grupo Gigante
invested in
RadioShack México
in 2015
in a Buyout deal
Disclosed details
Transaction Size: $32M
Revenue: $91M