Booker Group PLC Proposed Acquisition of Londis and Budgens (8523N)
May 21 2015 - 2:05AM
UK Regulatory
TIDMBOK
RNS Number : 8523N
Booker Group PLC
21 May 2015
21 May 2015
BOOKER GROUP PLC
Proposed acquisition of Londis and Budgens in Great Britain for
GBP40 million
Booker Group plc ("Booker"), the UK's leading food wholesaler
and Musgrave Group plc ("Musgrave"), are pleased to announce that
they have signed a sale and purchase agreement for Booker to
acquire the entire issued share capital of Musgrave Retail Partners
GB Limited ("GB Limited"), which comprises the Londis and Budgens
businesses in Great Britain for GBP40 million (net of cash balances
being acquired) to be satisfied in cash at Completion. Completion
of the Acquisition is conditional on the approval of the
Competition & Markets Authority.
Londis is a symbol retail chain of 1,630 convenience stores.
Sales in the year to December 2014 were GBP504 million. Budgens is
a franchised chain of grocery stores. It has 167 stores with sales
of GBP329 million in 2014. In the year to December 2014, GB Limited
had sales of GBP833 million and made an operating loss before
exceptional items of GBP7.4 million.
Through Booker, Londis and Budgens joining forces, we will help
independent retailers and consumers throughout Great Britain.
Following Completion, Booker's aim is to further develop the
Budgens and Londis brands alongside Premier and Family Shopper,
Booker's retail brands. GB Limited's supply chain will be used for
delivery to Booker retail customers. Budgens and Londis customers
will retain their brands, but will benefit from a better local and
national supply chain. This will help improve the choice offered by
the retailers to the consumer. The increased scale and operational
efficiency should help lower prices, and retailers will benefit
from a better delivery and cash and carry service. This will help
independents prosper amid the changes that are occurring in the
grocery market.
Booker and Musgrave are also developing a strategic partnership
agreement to facilitate opportunities and the sharing of
competencies between the two groups.
We anticipate that the Acquisition will be earnings neutral in
the first complete year of ownership and earnings enhancing
thereafter.
Commenting on the proposed transaction, Charles Wilson, Chief
Executive of Booker, said:
"Booker, Londis and Budgens are joining forces to help
independent retailers prosper throughout Great Britain. 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."
The Acquisition constitutes a Class 2 transaction for the
purposes of the UK Financial Authority's Listing Rules and, as
such, does not require Booker shareholders' approval. The gross
assets at December 2014 were GBP185 million. Further announcements
will be made in due course.
Investor Enquiries
For further information contact:
Tulchan Communications (PR Adviser to Booker Group plc)
020 7353 4200
Jonathan Sibun
Will Smith
Disclaimer
This announcement may include "forward-looking statements" with
respect to certain of Booker's plans in relation to GB Limited,
Londis and Budgens and its current goals and expectations relating
to its future financial condition, performance and results. These
forward-looking statements sometimes contain words such as
'anticipate', 'target', 'expect', 'intend', 'plan', 'goal',
'believe', 'may', 'might', 'will', 'could' or other words of
similar meaning. By their nature, forward-looking statements
involve known and unknown risks and uncertainties because they
relate to future events and circumstances which may be beyond
Booker's control, including, among other things, UK domestic and
global economic and business conditions, market-related risks such
as fluctuations in interest rates and exchange rates, the policies
and actions of regulatory authorities, the impact of competition,
the possible effects of inflation or deflation, the impact of tax
and other legislation and regulations in the jurisdictions in which
Booker operates. As a result, Booker's actual future financial
condition, performance and results may differ materially from those
expressed or implied by the plans, goals and expectations set forth
in any forward-looking statements, and persons receiving this
announcement should not place reliance on forward-looking
statements.
Booker expressly disclaims any obligation or undertaking (except
as required by applicable law) to update the forward-looking
statements made in this announcement or any other forward-looking
statements it may make or to reflect any change in Booker's
expectation with regard thereto or any changes in events,
conditions or circumstances on which any such statement is based.
Forward-looking statements made in this announcement are current
only as of the date on which such statements are made.
All oral or written forward-looking statements attributable to
the Directors of Booker or persons acting on their behalf are
qualified in their entirety by these cautionary statements.
None of the statements in this announcement are, nor are any
intended to be, a profit forecast and none should be interpreted to
mean that the profits or earnings per share of Booker in the
current or any future financial period necessarily is or will be
above or below the equivalent figure for any previous period.
ENDS
This information is provided by RNS
The company news service from the London Stock Exchange
END
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