Wal-Mart Sells Mexico Clothing Chain to Liverpool for $1 Billion

08/10/2016 Bloomberg

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Photo credit: Bloomberg

Wal-Mart Stores Inc.’s Mexican unit agreed to sell its Suburbia clothing chain to El Puerto de Liverpool SAB, Mexico’s biggest department store chain operator, in a deal valued at 19 billion pesos ($1.03 billion).

The transaction, which involved 119 stores, is subject to regulatory approval, Wal-Mart de Mexico SAB and Liverpool said in statements Wednesday after markets closed. Liverpool will pay 15.7 billion pesos, assume 1.4 billion pesos of debt and distribute an additional 3.3 billion pesos to shareholders after the deal is completed. As part of the deal, Liverpool will also pay rent to Walmex for all 34 store locations where Suburbia stores stand alongside Wal-Mart stores.

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