KUALA LUMPUR (April 13): Village Grocer Holdings Sdn Bhd (VGH), the owner of premium supermarket chain Village Grocer, announced that it has acquired a 100% stake in Bens Independent Grocer Sdn Bhd (B.I.G.) from BIG Sdn Bhd (The Big Group), confirming The Edge Financial Daily's cover story today.

In a statement today, Village Grocer said the acquisition sees VGH gaining control over B.I.G.'s chain of grocery outlets, further strengthening VGH's position as one of the leaders within the premium grocery segment, with VGH and B.I.G. having a total of 13 outlets and combined annual revenue of approximately RM560 million.

The Big Group is divesting its retail grocery business to focus on and grow its food and beverage business, which has a stable of widely recognisable brands under its umbrella.

Quoting sources, The Edge Financial Daily reported today that private equity firm Navis Capital Partners has expanded its premium grocery shopping business in Malaysia, following recent acquisition of B.I.G. supermarket chain by its majority-owned subsidiary VGH.

The deal is done at a valuation of about 12 times price-earnings ratio and the purchase consideration will be satisfied through cash and shares, according to a source.

Meanwhile, in the statement today, VGH group executive chairman Ong Kim Too said, "The acquisition of B.I.G. is a strategic business decision that fits in very well with our long-term growth and expansion plans within the premium grocery market. Both Village Grocer and B.I.G. have very strong, distinct identities and have through the years attracted strong consumer followings respectively."

"With this acquisition, we have an opportunity of extracting procurement and operational synergies to better serve a growing market segment. Most importantly, we are able to provide the increasingly discerning Malaysian consumers with a wider range of local as well as imported products that are of the highest quality, freshness and value," he added.

Following the acquisition, both Village Grocer and B.I.G. will continue to exist and operate as two separate brands, and B.I.G. will continue to be run by its present management team.

The Big Group founder and group "chief eating officer" Benjamin Yong, said: "B.I.G. has managed to grow to where it is today within a relatively short period of time and we are confident that Village Grocer [is] able to grow the brand further. We are extremely excited for the next phase of B.I.G.'s evolution."

Both Village Grocer and B.I.G. have been growing steadily over the years, recording double-digit growth.

Ong added, "Expansion plans for both brands are in the pipeline and we are targeting to open a few more outlets in, and outside of, the Klang Valley over the next 18 months."

Founded in 2004 with its first Village Grocer outlet in Bangsar Village mall, VGH today operates a total of 10 outlets in the Klang Valley.

B.I.G. was founded in 2011 and its outlets are located in Publika Shopping Gallery, Plaza Batai and Glo Damansara.