Future Group buys Chandrababu's Heritage group 

Kishore Biyani-led Future Group on Monday said it has signed a definitive agreement to acquire retail and allied businesses of city-based Heritage Foods Ltd in an all stock deal.

Heritage Foods, which currently owns 124 retail outlets under the brand name ‘Heritage Fresh’, will get 3.65 per cent share-holding in Future Retail through fresh issuance of shares.

Reatil and dairy major Heritage Foods was promoted by the family members of Andhra Pradesh Chief Minister N Chandrababu Naidu.

As part of the scheme of arrangement for the acquisition, Heritage Foods will spin off its retail, bakery, agri-sourcing and veterinary care businesses in a fully-owned subsidiary.

Subsequently, all these businesses except veterinary care will then be merged with Future Retail Ltd.

“Heritage Foods will get 3.65 per cent shares worth Rs 295 crore from Future Retails. Heritage dairy products business will leverage the strength of Future Retail to spread Pan-India,” said Lokesh Nara, Director of Heritage Foods.