Discount retailer B&M has bought convenience group Heron Food Group and its 251 shops in the North of England so that it can create its own convenience grocery chain.
The deal, completed today, values the business at £152m. B&M has paid £112m today; another £12.8m will be payable depending on the performance of the company over the next 18 months.
B&M said that the acquisition would allow it to develop and roll out its own discount convenience grocery brand.
B&M said: “The customer profiles of Heron and B&M are similar and both formats are expanding successfully. Convenience is one of the areas of growth in grocery retailing today, although much of this growth to date has been based on premium pricing.
“The board of B&M believes that Heron’s expertise and attractive store portfolio, when supported by B&M’s sourcing, retailing and store roll-out capabilities, can bring an attractive new customer value proposition in an expanding sector of the grocery market.”
B&M was advised by Bank of America Merrill Lynch, PwC, Addleshaw Goddard and Gordons.
To send feedback, e-mail amber.rolt@egi.co.uk or tweet @AmberRoltEG or @estatesgazette
