Bibby Line Group has agreed the sale of Costcutter Supermarkets Group (CSG) to Bestway Wholesale – the UK's largest independent wholesaler.
CSG has reported a significantly improved performance over the last two years, following investment in key areas of the business.
During the 12 months to 31 December 2019, CSG’s sales rose by 10% to £426m, with EBITDA increasing by more than £9m to £5.1m.
The agreement completes the planned strategic realignment of Bibby Line Group’s portfolio, following the sale of Bibby Distribution to Menzies Distribution on 14 December.
Bibby Line Group chief executive 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.
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“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.”
Added Bestway Wholesale MD Dawood Pervez: “Costcutter is a great brand with a long heritage and a history of success alongside industry-leading and loyal retailers, with some of the best in-store execution in the business.
“The acquisition of CSG by Bestway Wholesale enables us to further build on our solid foundations in independent retail, allowing us to expand on our already established, and highly respected, fascias and national network of stores. Clearly, there will be benefits of joining forces for our retailers, for shoppers, and for suppliers.”
Under the acquisition CSG will become part of Bestway Wholesale’s retail division and continue to operate as normal. Approximately 1,500 stores branded under Costcutter, Mace, Supershop, Kwiksave, and Simply Fresh will join Bestway Wholesale’s current retail brands; Bargain Booze, Best-One, Wine Rack, Select Convenience and Central Convenience.
Completion is conditional on Financial Control Authority approval which is expected in the first quarter of next year. Until that time CSG will remain part of Bibby Line Group.
Bibby Line Group were advised by CMS and PwC on the agreed sale.
