Bibby Line Group acquires majority stake in Costcutter

Liverpool-based Bibby Line Group has taken a 51% stake in the supermarket group, including the previous shareholding held by Icelandic bank Kaupthing. Costcutter’s existing management team and shareholders – executive chairman Colin Graves, managing director Nick Ivel, sales and development director David Thompson, and trading and marketing director Angela Barber – will continue to operate the business. They will be joined on the board by three non-executives from Bibby Group.

Bibby handles the ambient distribution for retail buying group Nisa Today’s. Costcutter, which owns 28 shops and supplies more than 1,500 independent convenience stores, is the largest member of the group. The deal is believed to have valued Costcutter, which has a turnover of GBP 540m and earnings of GBP 13m, at more than GBP 100m.

A spokesman for Bibby Line Group says the company does not wish to comment on the deal. But Graves says it will secure the future of Costcutter and lead to the expansion of the business, which currently employs 450 people. He adds: “This secures the company forever and a day. Bibby is not into short-term investments. The main reason for selling was to secure the long-term future of Costcutter.”