Conviviality uncorks Yorkshire store swoop
BARGAIN Booze owner Conviviality Retail has snapped-up 37 convenience stores based in Yorkshire and the East Midlands in a £6m deal.
The AIM-listed Crewe company is buying GT News (Holdings) Limited for a net cash consideration of £6m with a working capital adjustment estimated at approximately £0.3m. GTN, which has its head office in Barlborough, Derbyshire, generated revenues of £57m in the year to July 2014.
Conviviality said the purchase of GTN complements its acquisition last year of Rhythm and Booze, improving store density in the East Midlands and Yorkshire to drive logistics and marketing efficiencies.
It added: “These stores provide an excellent fit with the existing Conviviality portfolio and that profitability will be enhanced with Conviviality’s greater buying power, marketing expertise, logistics capabilities and consolidation of back office functions. Conviviality will rebrand the majority of the stores under its Bargain Booze or Bargain Booze Select Convenience fascias.”
The total consideration for the acquisition of GTN is £7.6m and is being settled in cash. Immediately on acquisition freehold property held within GTN will be sold back to the Vendors for £1.6m in cash. Therefore the net consideration is £6 million before the working capital adjustment.
Diana Hunter, chief executive of Conviviality Retail said: “The acquisition of 37 stores from GT News is in line with our stated aim to grow our business into areas which are underserved by our brands.
“Yorkshire and the East Midlands are two such areas and will provide a significant growth opportunity. Customers will get even better value for money across all the brands and ranges that they currently buy as well as the additional benefit of a much stronger range of beers wines and spirits.”
Advisers to Conviviality included Zeus Capital and Manchester law firm Pannone Corporate. Partner Tom Hall, who led the Pannone Corporate team wich included Craig Geraghty and Mark Winthorpe, said: “GTN is a leading name in the convenience store sector and will be an excellent addition to the Conviviality Retail portfolio.”
