Booker Group has signed a sale and purchase agreement to acquire the entire issued share capital in retailers Londis and Budgens for £40m.
The wholesaler’s acquisition of Musgrave Retail Partners, which comprises the two companies, will be completed in cash upon the approval of the Competition and Markets Authority. The two businesses operated nearly 1,800 convenience and grocery stores and generated combined sales of £1.16bn in 2014.
Budgens and Londis will retain their brands, Booker confirmed, but will benefit from a better local and national supply chain. The group also claimed there would be improved choice for consumers; increased scale and operational efficiency, leading to lower prices; and a better delivery and cash-and-carry service for the two brands.
It also claimed that the deal could have wider implications for the evolving grocery sector.
Booker chief executive Charles Wilson said: “Booker, Londis and Budgens are joining forces to help independent retailers prosper throughout Great Britain. This transaction should strengthen Londis, Budgens, Premier, Family Shopper and other Booker retailers, through improving choice, prices and service to consumers. Overall it will help independent retailers prosper.”
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