Casino, the French supermarket group, has announced that it has signed an agreement with funds managed by affiliates of Apollo Global Management, a private equity firm, to sell it a portfolio of 12 Geant Casino hypermarkets and 20 Monoprix and Casino supermarket properties.
The deal for the 32 stores amounts to €470 million ($527 million), of which €374 million ($419 million) is to be paid by the end of July.
In a statement, Casino said the Apollo funds would create a special purpose vehicle to acquire the portfolio in order to enhance its value and sell it on the market under the best possible conditions.
“The Casino Group will receive an interest in this new entity, enabling it to benefit from the value created by the transaction”, it added.
Casino has been gradually disposing of non-strategic assets in a bid to reduce its significant debt burden. This included the sale of 32 hypermarkets and supermarkets to rival chain E.Leclerc and the Fortress Investment Group in January.