Booker Group to acquire Londis and Budgens
Food wholesaler Booker Group is to acquire the Londis and Budgens grocery chains in a £40 million deal.
The company will buy the businesses from the Ireland based Musgrave Retail Partners.
While Londis operates 1,630 convenience stores and achieved sales of £504 million last year, franchise chain Budgens has 167 stores and notched up sales of £329 million in 2014. In the year to December 2014, Musgrave Retail Partners had sales of £833 million and made an operating loss before exceptional items of £7.4 million.
In a statement, Booker said it would develop the Budgens and Londis brands alongside its Premier and Family Shopper retail brands. It said the increased scale and operational efficiency would help lower prices and that retailers would benefit from a better delivery and cash and carry service.
Musgrave’s supply chain will be used for delivery to Booker retail customers. Booker said it is developing a strategic partnership agreement with Musgrave to “facilitate opportunities and the sharing of competencies” between the two groups.
Charles Wilson, chief executive of Booker, added: "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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