McColls to buy 298 Co-op stores
Retailer McColls has conditionally bought 298 convenience stores from the Co-operative Group in a £117m cash deal. The deal will boost McColls’ presence considerably. The company currently has a network of around 1,000 neighbourhood convenience stores.
In a statement issued yesterday (13 July), Jonathan Miller, Chief Executive, commented: “I am delighted to announce the acquisition of 298 quality convenience stores in a transformational deal for McColl’s. This opportunity substantially accelerates our growth strategy and expands our neighbourhood presence for the benefit of our customers.
“These stores are profitable, well invested, and the perfect size for our operating model. We expect the transaction to be significantly earnings enhancing for our shareholders.
“I look forward to welcoming all of our new colleagues to the business.”
The McColl statement added: “The Acquisition is conditional upon the majority approval of Shareholders and the approval of the CMA. McColl’s expects to obtain CMA approval in phase 1 and consequently expects the initial acquisition of stores in the Portfolio to occur in January 2017.”
The Co-op has various delivery and Click&Collect agreements in place for many of its stores across the UK – it has not been stated how this activity will be affected in the stores set to be purchased by McColl.