Bestway Wholesale has announced it has agreed a deal to acquire Costcutter Supermarkets Group (CSG) from Bibby Line Group for an undisclosed amount.
Taking annual turnover to nearly £3bn
The acquisition, which will complete on approval from the Financial Conduct Authority (FCA), will see Bestway Wholesale’s turnover reach almost £3bn. It will also take the symbol, franchise, and company store retail estate to more than 3,795 stores across the UK, including 2,682 fascia and 195 company-owned stores.
The deal follows an improvement in CSG’s financial performance over the last two years. CSG’s sales rose by 10% to £426m in 2019, with sales and profitability continuing to rise throughout 2020 due to the increase in local shopping as a result of the COVID-19 pandemic.
CSG and its brands will become part of Bestway Wholesale’s retail division, continuing to operate as normal. Approximately 1,500 stores branded under Costcutter, Mace, Supershop, Kwiksave, and Simply Fresh, along with 20 Costcutter and 4 Co-op franchises will be added to Bestway Wholesale’s retail estate. The retail estate currently consists of stores branded under Bargain Booze, Best-One, Wine Rack, Select Convenience and Central Convenience.
Bestway also confirmed that it has agreed a two-and-a-half year extension to the wholesale supply agreement with Co-op. This means that Co-op will continue to supply Costcutter stores with branded and own label products via its Nisa supply chain until 2026.
Darcy Willson-Rymer, CSG’s CEO of nine years, is set to leave the business following completion of the deal. Dawood Pervez will lead the business as Managing Director of Bestway Wholesale.
Dawood Pervez, Managing Director of Bestway Wholesale, commented:
“We are keen to reassure CSG’s retailers that it is ‘business as usual’ and they will see no change in how they currently work with CSG. The existing CSG supply contract with Co-op/Nisa is not affected by the acquisition and Nisa will continue to supply CSG stores. The 2,000 Co-op SKU range has proven to be an important driver of footfall and sales, as well as providing CSG retailers with an exceptional range of fresh produce.
“This means that Costcutter’ retailers will continue to benefit from access to the same range they have today, including a fresh offer that is right for today’s convenience shopper, as well as the Co-op’s Own Brand range.”