Musgrave Group has agreed to buy rival Superquinn – the day after it entered receivership.

The deal is subject to regulatory approval and Superquinn will continue to be managed by administrators from KPMG until the transaction is completed. Musgrave pledged to invest in the stores and said it would bring new value to shoppers.

“Superquinn has been challenged by the scale of its debt burden and the difficult trading environment,” Musgrave said in a statement.  “This purchase secures the jobs of 2,800 people.”

“Purchasing Superquinn supports our growth agenda and will sustain our competitiveness,” added Musgrave chief executive Chris Martin said. “We are looking forward to working with the Superquinn team to develop the future of the business.”

The combination of Superquinn and Musgrave’s existing Supervalu brand would bring its share of the Irish grocery market to 25.8%, including 6.1% from Superquinn. The combined group remains just behind Tesco, which controls 27.6%.

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Dunnes’ Street takes CEO role at Superquinn (4 December 2010)