Conviviality eyes up P&H's Central Convenience chain
Conviviality’s retail chain Bargain Booze has made a bid to buy 109 convenience stores from Palmer & Harvey, which went into administration last month.
Bargain Booze plans to buy the business and assets of these stores and the rights as franchisor of a further 18 franchisee-operated stores trading under the fascia Central Convenience, from WS Retail, for £25 million. WS Retail is a wholly-owned subsidiary of Palmer & Harvey.
The acquisition of the Central Convenience chain would strengthen the retail presence of Bargain Booze, particularly in the south and south west of England.
It would add, in aggregate, 127 convenience stores, including 20 petrol forecourts, stores incorporating 47 post offices and 18 franchisee operated stores, and it would secure wholesale supply to owned and franchised stores, allowing the group to realise further economies of scale.
Diana Hunter, chief executive officer at Conviviality, said: “We are pleased to have finalised terms for a potential acquisition to accelerate the growth and reach of the existing Conviviality Retail business, notably broadening our geographical footprint in the south and south west of England. The acquisition, if effected, will support our strategic goal to be the drinks and impulse sector’s leading independent distributor and we believe that potential exists for a range of synergies and increased returns for Conviviality’s shareholders. We look forward to welcoming colleagues from Central Convenience to the Conviviality Group.”
Under the terms of the offer the acquisition needs to be approved by the end of today.