German retailing giant Metro on Thursday agreed to buy Singapore-headquartered Classic Fine Foods from private equity firm EQT for an enterprise value of $290 million following an auction process as interest in Asia's retail sector remains keen.
The Dusseldorf-based retailer could pay a further $38 million depending on whether Classic Fine Food achieves certain pre-tax earnings targets from 2015 to 2017.
The acquisition will enable Metro to move up the food chain, enabling it to capitalise on rising demand for gourmet products in Asia. The company has partnerships with suppliers to distribute products including Illy coffee and Valrhona chocolate.
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