BWG Group, one of Ireland’s leading food wholesalers and retailers, has today made an offer of €23 million to acquire the trading business of ADM Londis.
Londis’ Board members who are shareholders have confirmed that they intend to accept the offer in respect of their shares.
Completion of the offer is subject to certain conditions including acceptance of the offer by the holders of at least 80% of the issued shares of ADM Londis and Competition and Consumer Protection Commission clearance.
Londis is an independent, well established symbol brand operating in the convenience, forecourt and supermarket sector in Ireland through a range of 200 stores located throughout the country. The Company, which has been operating in Ireland for more than 60 years, is owned by its members and reported sales of approximately €195 million for 2013.
Londis is a complementary business to BWG’s existing multi-brand retail operations which comprise 1,175 SPAR, EUROSPAR, MACE and XL symbol stores throughout Ireland and the South West of the UK.
Following completion of the deal, BWG has confirmed that it is committed to retaining and promoting the Londis brand and to investing in its future growth and development.
BWG has ambitious plans to expand its business and following the recent investment by SPAR South Africa, the Group has significant funds available for investment in suitable opportunities. The Offer for Londis is consistent with BWG’s strategy for growth and the Group believes that it will bring significant benefits to Londis’ retailers in terms of shared purchasing, marketing, and innovation in areas such as store formats and fresh food.
Commenting on the Offer, Leo Crawford, CEO, BWG Group, said: “We are excited about the opportunity to grow the Londis brand in conjunction with our existing portfolio of market leading convenience brands. Through our partnership with SPAR South Africa, BWG has ambitious plans for investment and expansion and we would warmly welcome Londis retailers into our business where they can be part of our future success”.
Commenting on behalf of Londis, Stephen O’Riordan, CEO, said: “At Londis we’re keen to continue a journey that has seen the group drive efficiency and service whilst delivering value for customers and protecting retailer margins. We believe that being part of a global business of scale would further enhance competitiveness for consumers and franchisees. We are encouraged by BWG’s commitment to supporting the Londis brand and to investing alongside our retailers for continued growth”.