Nisa board backs Co-op takeover

The board of Scunthorpe-based retailer Nisa has unanimously recommended to its shareholders an offer of up to £137.5m from The Co-op Group as the takeover moves forward.

The Co-op Group’s offer to buy 100% of the shares in Nisa for up to £137.5m, plus the payment of associated deal costs of up to £5.5m, results in a total payment by the Co-op Group of up to £143m. Nisa shareholders will receive an equal initial payment, a deferred share payment payable over three years, as well as additional rebates payable over four years.

The Co-op Group says the offer, if successful, would bring significant immediate and long-term value for Nisa members, while enabling them to remain part of a member-owned organisation.

Co-op would also take on the existing Nisa debt of £105m. The Co-op plans to retain Nisa as a standalone business and brand, which has around 1,190 members and services 3,200 stores.

The terms of the acquisition remain conditional on the approval of Nisa members and CMA clearance. A vote of the membership will be held in early November.

Peter Hartley, Chairman of Nisa, said: “The Board was unanimous in its decision to recommend the Co-op offer. While the business has made significant strides in recent years, we firmly believe that the combination with the Co-op is in the best interests of our members. The Co-op offers the right blend of buying capability, convenience expertise, and respect for the heritage of our business, to enable our members to fully thrive in this new partnership.”

Jo Whitfield, Food CEO of The Co-op, said: “This acquisition provides the opportunity to create an even greater and more compelling member-led presence within the UK convenience sector. We believe we have presented a compelling offer for Nisa members, with a future proposition that would bring them our award winning own label products and wide range.

“Over the past three years, Co-op Food has been completely transformed through a convenience-led focus on delivering great value products for our members and creating real value for them and their communities.

“If our offer is accepted by Nisa members and approved by the CMA, we can deliver a win-win for two member-led, community-focused organisations, and in the process create a distinctive footprint within the growing UK convenience retail sector.”

The offer is expected to be put to Nisa members to vote upon in November.

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