Retail group BWG Group, which operates Spar in Ireland and the southwest of England, has made an offer to acquire the trading business of ADM Londis for €23m.
BWG Group operates more than 1,100 stores in Ireland, accounting for a 35 per cent market share of the Irish convenience store market and has annual revenues of €1.2 billion.
The acquisition will add the Londis brand to its retail operations, which also includes Spar, Eurospar, Mace and XL symbol stores.
BWG Group also operates a number of stores in the southwest of England.
While Londis's board members have confirmed that they intend to accept the offer, the deal is subject to approval by competition authorities. It also requires the support of at least 80 per cent of ADM Londis shareholders.
BWG Group sold an 80 per cent stake in its business to Spar South Africa last August. The partnership plans to invest €100m in the expansion of the wholesale and convenience retailing operations over the next five years.
"We are excited about the opportunity to grow the Londis brand in conjunction with our existing portfolio of market leading convenience brands," said BWG group chief executive Leo Crawford (pictured).
He continued: "Through our partnership with Spar South Africa, BWG has ambitious plans for investment and expansion and we would warmly welcome Londis retailers into our business where they can be part of our future success"
Hear BWG chief executive Leo Crawford speak at the Checkout Conference 2015 in Dublin on Tuesday, January 27. Read more here: http://www.checkout.ie/Events/first-speakers-announced-for-2014-checkout-conference.html
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