Trevor Coates, the managing director of Australia supermarket operator Foodland, said the group is aiming to build up a portfolio of 50 supermarkets in the eastern states of Australia.

The group will acquire 36 or 37 Franklins stores following the breakup of that grocery chain, reported Dow Jones. Foodland will also acquire a distribution centre currently owned by Franklins’ Hong Kong-based parent Dairy Farm International.

In revenue terms, the additional stores will enhance Foodland’s balance sheet by slightly in excess of A$500m (US$257m).

Foodland today reported Q4 sales up by 6.5% to A$913.4m. Sales for the 12 months ended 29 July climbed 3.5% to A$3.63bn.