Nisa board recommends The Co-op's takeover offer
Nisa Retail, the member-owned retail and wholesaling group, has recommended that its members accept a takeover offer of up to £137.5 million from The Co-op.
The company said the takeover could bring significant benefits for Nisa members, including access to greater scale and The Co-op’s ranges, retention of their independence in operating stores, while also enabling them to remain part of a member-owned organisation within the UK convenience retail sector.
The Co-op has offered to buy 100% of the shares in Nisa for up to £137.5 million and to pay associated deal costs of up to £5.5 million.
If the deal is approved, Nisa shareholders would receive an equal initial payment, a deferred share payment payable over three years, as well as additional rebates payable over four years.
The Co-op would also take on Nisa’s debt of £105 million.
Peter Hartley, chairman of Nisa, said: “The board was unanimous in its decision to recommend the Co-op offer.
“The Co-op offers the right blend of buying capability, convenience expertise, and respect for the heritage of our business, to enable our members to fully thrive in this new partnership.”
The terms of the acquisition remain conditional on the approval of Nisa members and CMA clearance. If it does proceed, The Co-op plans to retain Nisa as a standalone business with its 1,190 members and 3,200 stores.
Jo Whitfield, food chief executive The Co-op, said: “Over the past three years, Co-op Food has been completely transformed through a convenience-led focus on delivering great value products for our members and creating real value for them and their communities.
“If our offer is accepted by Nisa members and approved by the CMA, we can deliver a win-win for two member-led, community-focused organisations, and in the process create a distinctive footprint within the growing UK convenience retail sector.”
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