UK: Booker Group, the UK food wholesalers is to acquire the Londis and Budgens convenience stores for £40m.
The deal with Musgrave Group plc is for the entire issued share capital of the stores’ owner Musgrave Retail Partners GB Ltd.
The Londis retail chain comprises 1,630 convenience stores. Sales in the year to December 2014 were £504m. Budgens has 167 stores with sales of £329m in 2014.
Following Completion, Booker says it aims to further develop the Budgens and Londis brands alongside Premier and Family Shopper, Booker’s retail brands. Musgrave’s supply chain will be used for delivery to Booker retail customers and Budgens and Londis customers will benefit from a better local and national supply chain, improved choice and lower prices.
Booker and Musgrave are also said to be developing a strategic partnership agreement to facilitate opportunities and the sharing of competencies between the two groups.
“Booker, Londis and Budgens are joining forces to help independent retailers prosper throughout Great Britain,” said Booker chief executive Charles Wilson. “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,” he added.