Musgrave Group Agrees to Develop Strategic Partnership with Booker
Musgrave Group today announces that it has reached agreement to sell its GB business which operates the Budgens and Londis brands to Booker for a total cash consideration of €57 million (£40 million) on a cash free-debt free basis. Completion of the transaction is subject to CMA approval.
Chris Martin, CEO of Musgrave Group, said: “The grocery market in Great Britain is experiencing fundamental and permanent structural change, with intense competition and a deflationary environment. Given these challenging market dynamics, we carefully evaluated all of the possible options for our GB business. 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. The agreement also includes the development of a strategic partnership with Booker.
Booker will be a good fit for retailers and will continue to develop the Budgens and Londis brands utilizing the supporting supply chain and head office. Retailers will benefit from Booker’s buying strength, an extensive operational footprint throughout Great Britain including a nationwide distribution and cash and carry infrastructure and a service culture that is proven to meet the needs of independent retailers.
Musgrave GB has been a loss-making business and while the decision to sell Budgens and Londis is difficult, it will allow the Group to drive forward with its growth strategy which is about developing our market-leading retail, convenience and cash and carry brands in the Republic of Ireland, Northern Ireland and Spain.
We see the opportunity for growth in the improving Irish economy. 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.”