United Co-operatives has dipped into its £100m acquisitions warchest to buy Oswestry-based c-store chain Cheers Shropshire.
Number 49 in The Grocer Top 50, Nisa-supplied Cheers operates 12 stores in North Wales, Shropshire and Cheshire trading as Neighbours Foods & Drink Stores. Turnover in 2003 was just over £12m.
The deal, which boosts United’s c-store estate to 415, is the society’s first sizeable purchase following an April announcement that it had ringfenced £100m to spend on acquisitions in 2004.
Further deals were in the pipeline, said Food Group general manager Tim Hurrell.
The second largest co-op after the Co-operative Group, United was formed in 2002 by the merger of United Co-op and Yorkshire Co-op, and has been aggressively expanding its c-store portfolio ever since.
In April, chief executive Peter Marks said he was in talks with several groups concerning deals involving up to 20 stores.
Significant investment has also been pumped into refurbishments following the merger, with more than 150 stores modernised this year.
An investment programme to refurbish the Neighbours stores will start when the deal is completed on August 2 and is likely to take about three months, said Hurrell.
United was also working on a new c-store format with an emphasis on fresh to be unveiled next year, he added.
Cheers MD Howard Jones said he would now have more time to devote to other commercial interests. He added: “United’s offer realised a good return for shareholders and protected the staff.”
Retail operations director David Quilty moves to United to aid with the integration.
Number 49 in The Grocer Top 50, Nisa-supplied Cheers operates 12 stores in North Wales, Shropshire and Cheshire trading as Neighbours Foods & Drink Stores. Turnover in 2003 was just over £12m.
The deal, which boosts United’s c-store estate to 415, is the society’s first sizeable purchase following an April announcement that it had ringfenced £100m to spend on acquisitions in 2004.
Further deals were in the pipeline, said Food Group general manager Tim Hurrell.
The second largest co-op after the Co-operative Group, United was formed in 2002 by the merger of United Co-op and Yorkshire Co-op, and has been aggressively expanding its c-store portfolio ever since.
In April, chief executive Peter Marks said he was in talks with several groups concerning deals involving up to 20 stores.
Significant investment has also been pumped into refurbishments following the merger, with more than 150 stores modernised this year.
An investment programme to refurbish the Neighbours stores will start when the deal is completed on August 2 and is likely to take about three months, said Hurrell.
United was also working on a new c-store format with an emphasis on fresh to be unveiled next year, he added.
Cheers MD Howard Jones said he would now have more time to devote to other commercial interests. He added: “United’s offer realised a good return for shareholders and protected the staff.”
Retail operations director David Quilty moves to United to aid with the integration.
No comments yet