FDBusiness.com

B&M Acquires Discount Convenience Grocery Brand

 Breaking News
  • Florette Further Expands its UK Business In line with its strategy to be a major player within the UK fresh produce category, Florette UK & Ireland (part of the French Agrial group) has acquired the Wigan site of MyFresh Prepared Produce, a producer of a wide range of salad and vegetable products. MyFresh, Wigan, which employs almost 300 people and was [...]...
  • FrieslandCampina Simplifies its Organisation Royal FrieslandCampina intends to simplify its organizational structure into four to be set up global business groups – Consumer Dairy, Specialised Nutrition, Ingredients and Basic Dairy. A less complex structure will enable FrieslandCampina to more decisively respond to the market developments and to innovate better with respect to strategic priorities. The objective of the new [...]...
  • Heineken’s Acquisition of Punch is Cleared The Competition and Markets Authority (CMA) has accepted proposals by Heineken to resolve concerns over its £402.7 million acquisition of Punch Taverns, one of the UK’s largest leased pub companies, with a portfolio of more than 3,500 pubs nationwide. In June, the CMA said that Heineken’s proposed purchase of part of the Punch Taverns estate [...]...
  • Changing Consumer Tastes Drive Long-term Global Sugar Market Slowdown The consumers’ shift away from sugar consumption is an important driver behind significant changes in the food and beverage industry. These changes will have long-term ramifications, including a likely slowdown in the worldwide sugar market, according to the latest report of Rabobank ‘Sweetness and Lite’. A combination of changing preferences, product reformulations and government pressure have [...]...
  • How is the Rise of E-Commerce Changing the Role of Physical Stores? The rise of the internet has allowed retailers to directly connect with consumers from beyond the physical store revolutionising the competitive space more than ever. The world recently saw the acquisition of Amazon and Whole Foods which sent shock waves through the retail industry. This unforeseen merger has put retailers under pressure more than ever [...]...
  • SPX FLOW Appoints Pierre Sbabo as Vice President, Food and Beverage in EMEA SPX FLOW has announced the appointment of Pierre Sbabo as the Vice President of its Food and Beverage business in EMEA. He comes from a strong background in the water and process technology markets with truly international experience. With a Master’s Degree in Marketing and International Business from ESC Chambery, Sbabo has worked for global leaders [...]...

B&M Acquires Discount Convenience Grocery Brand

B&M Acquires Discount Convenience Grocery Brand
August 04
09:09 2017

B&M European Value Retail, the UK’s leading multi-price value retailer, has acquired Heron Food Group, a discount convenience retailer operating predominantly in the North of England with 251 stores, for an enterprise value of £152 million including debt. B&M is a fast-growing discount retailer, operating from over 500 high street and out of town stores across the UK, as well as under the JA Woll brand in Germany.

The acquisition of Heron will enable B&M to develop and roll out a complementary, proven and profitable discount convenience grocery brand. The customer profiles of Heron and B&M are similar and both formats are expanding successfully. Convenience is one of the areas of growth in grocery retailing today, although much of this growth to date has been based on premium pricing. The board of B&M believes that Heron’s expertise and attractive existing store portfolio, when supported by B&M’s proven sourcing, retailing and store roll-out capabilities, can bring an attractive new customer value proposition in an expanding sector of the grocery market.

For the year ended 31 December 2016 Heron delivered revenues of £274.4 million, EBITDA of £19.1 million and profit before tax of £8.6 million. Like-for-like revenue growth in the year was 3.0%. The business currently employs about.3,800 people and has approximately 1,200 SKUs, including ambient, frozen and chilled foods. Heron’s stores average 2,500 sq ft of retail space compared to B&M’s UK average of 19,000 sq ft.

Simon Arora, CEO of B&M comments: “B&M is already the UK’s leading general merchandise discount retailer, serving 4 million shoppers per week. The addition of a complementary, proven discount convenience grocery brand to our own structural growth story gives the combined business an even longer, exciting growth runway.”

About Author

mike

mike

Related Articles



Food & Drink Business Conference & Exhibition 2016

Upcoming Events

  • September 11, 2017drinktec
  • September 13, 2017FI Asia
  • September 19, 2017PROCESS EXPO 2017
  • September 22, 2017Global Summit on Food & Beverages
AEC v1.0.4

The Magazine

F&D Business Preferred Suppliers

Advertisements