Bestway Wholesale has confirmed acquisition of Costcutter
Bestway Wholesale has confirmed acquisition of Costcutter Supermarkets Group (CSG) from owner Bibby Line Group. Costcutter Supermarkets employs around 500 people.
The deal is expected for completion in the first three months of 2021 under the Financial Conduct Authority’s approval. It will bring Bestway’s total retail store estate to 3,795, which includes 2,682 symbol and 195 centrally owned sites. It would mark Bestway’s latest major acquisition following its takeover of Conviviality Retail in 2018.
Under the terms of the deal, Costcutter’s brands, which include Mace, Kwiksave, Simply Fresh and four Co-op franchises, will continue to operate as normal. Costcutter’s existing supply deal with Nisa will also remain unaffected.
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.
During the 12 months to 31 December 2019, CSG’s sales rose by 10% to £426m, it said, with sales and profitability continuing to rise throughout 2020 as consumers increasingly shopped locally as a result of the Covid-19 pandemic.
The acquisition takes Bestway Wholesale’s annual turnover to almost £3bn, alongside a symbol, franchise and company-owned store retail estate of more than 3,795 stores in the UK, including 2,682 fascia and 195 company-owned.
Under the terms of the acquisition, CSG and its brands 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, along with 20 Costcutter and four Co-op franchises, will join Bestway Wholesale’s retail estate, which already includes Bargain Booze, Best-one, Wine Rack, Select Convenience and Central Convenience.
Dawood Pervez, managing director of Bestway Wholesale, described Costcutter as a “great brand with a long heritage and a history of success”.
He said: “Clearly, there will be benefits of joining forces for our retailers, for shoppers, and for suppliers.”
Costcutter Supermarkets Group (CSG) employs around 500 people.
Costcutter Supermarkets Group (CSG) is a business based in the United Kingdom primarily operating as a symbol group supplier to various independently owned convenience shops and off-licences. It has operations in the United Kingdom, the Republic of Ireland and Poland. It encompasses both supermarkets and convenience shops.