Bestway says the move follows an improvement in the chain’s performance over the last couple of years. During the 12 months to 31 December 2019, Costcutter Supermarket Group’s revenues rose by 10% to £426m.
Sales and profitability
Sales and profitability continuing to rise during 2020 as consumers increasingly shopped locally because of the pandemic.
The acquisition is expected to be completed in the first quarter of 2021, with CSG then becoming part of Bestway Wholesale’s retail division. Approximately 1,500 stores across the UK will join Bestway’s current retail brands in GB – Bargain Booze, Best-One, Wine Rack, Select Convenience and Central Convenience.
Bestway stated that it was committed to ensuring retailers “continue to enjoy all the benefits they currently enjoy with CSG”.
Darcy Willson-Rymer, CSG’s CEO of nine years, will be leaving the business following completion of the deal. Dawood Pervez will lead the business from his current role as Managing Director of Bestway Wholesale.
Logistics operation sold
The Bibby Line Group recently sold its logistics operation to Menzies. Its CEO John Cresswell said: “Over the last two years, CSG has transformed itself into a profitable and much stronger business, and I’d like to thank the team for their unstinting commitment and passion for helping independent retailers thrive.
“We hope CSG will continue to prosper and grow as it becomes part of a larger business with deep retail expertise. This is also positive news for Bibby Line Group, completing the planned strategic realignment of our portfolio, further strengthening our Group balance sheet for future investment.”
Co-op and Nisa contract ‘not affected’
Bestway stated that the existing CSG supply contract with Co-op/Nisa is not affected by the acquisition and Nisa will continue to supply Costcutter stores with the same range they have today, including the 2,000-strong Co-op own label offer.
The deal takes Bestway Wholesale’s annual turnover to almost £3bn, alongside a symbol, franchise, and company store retail estate of more than 3,795 stores (including 2,682 fascia and 195 company-owned).