Mumbai– Mahindra & Mahindra (M&M) on Saturday said it would sell its franchise business to FirstCry for Rs 362.1 crore on a slump sale basis.

“A business transfer agreement has been executed by and between Mahindra Retail Pvt Ltd (MRPL), a subsidiary of the company, BrainBees Solutions Private Ltd and founder of FirstCry to transfer the franchise division of MRPL (BabyOye) as a going concern on a slump sale basis to FirstCry,” the company said in a filing to BSE.

“The total lump sum consideration for the transfer of the business is Rs 362.1 crore,” the filing said.

“In terms of the structure of the transaction, two companies have consolidated their operations, with Mahindra Retail selling its franchise business to FirstCry, and operating all company stores under a FirstCry master franchise agreement,” the company said in a statement.

The Board of Directors of the two companies have already approved this strategic move.

The baby and kids focused Omni channel player additionally raised $34 million of new equity capital from the Mahindra Group, PE fund Adveq, Kris Gopalakrishnan and participation from all existing shareholders, it said.

“The merged entity will conduct its business under the brand name – A FirstCry Mahindra Venture. It will have a parent base of over 4 million, a footprint of over 300 stores spread across 125 cities,” the statement said.

MRPL, which acquired in February 2015, has over 120 stores across the country. (IANS)