Musgrave to focus on NI after Booker buyout
Musgrave Retail Partners is to focus on a growth strategy for NI and the Republic after selling its Londis and Budgens brands to competitor Booker.
The Booker Group said last week it had purchased the retailers from leading food wholesaler Musgrave Group plc for £40 million.
Londis is a symbol retail chain of 1,630 convenience stores, and sales throughout 2014 reached £504 million. Budgens, a franchised chain of 167 grocery stores, managed sales of £329 million last year.
Completion of the acquisition is conditional on the approval from the Competition & Markets Authority.
Booker said its aim was to “further develop the Budgens and Londis brands” alongside its Premier and Family Shopper brands.
Chris Martin, CEO of Musgrave Group, said the deal followed a period of “fundamental and permanent structural change” in the retail market, which faced “intense competition” and a deflationary environment.
“Given these challenging market dynamics, we carefully evaluated all of the possible options for our GB business,” he said. “Having received a proposal from Booker, we concluded that a sale to Booker is the right thing for the group and would be the most advantageous outcome for our retailers, colleagues, and suppliers in Great Britain.”
However, Mr Martin said the deal meant the group would now focus on its retail, convenience, and cash and carry brands in the Republic, Northern Ireland, and Spain.
“We see the opportunity for growth in the improving Irish economy,” Mr Martin said. “To support our growth agenda, Musgrave is developing a strategic partnership with Booker. We will explore opportunities to collaborate on store formats, digital innovation, buying opportunities, sharing of best practice and to achieve cost savings and efficiencies for the business.”
Commenting on the proposed transaction, Booker CEO Charles Wilson said: “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.”
