AF Blakemore has agreed to acquire stores and logistics assets from Appleby Westward (AWG) following almost a year of speculation about a deal.
Under the agreement, AF Blakemore will acquire the south west England Spar licence, 71 of AWG’s company-owned stores, which are located across the south west, alongside its associated warehouse and logistics infrastructure and related independent retailer supply agreements, according to Spar Group, owner of AWG.
Completion of the transaction is subject to conditions, including lease assignments, and is expected to occur in stages from June to September.
Following completion, AF Blakemore will supply more than 1,000 Spar stores, which it said would reinforce its position as the largest Spar operator in the UK.
AF Blakemore added that the expansion into the south west would increase AF Blakemore’s scale and reach, enabling the business to secure stronger value for customers and retailers while continuing to invest in its supply chain and stores.
A further 63 Appleby Westward stores are being disposed of to third-party operators. These transactions are at an advanced stage and are expected to be completed by September.
It comes after Appleby Westward owner Spar Group said last year that it was looking to divest its UK business as it sought to prioritise investment in its core markets of South Africa and Ireland.
“This is a significant milestone for AF Blakemore and an important step in our long-term growth strategy,” said AF Blakemore CEO Carol Welch. “Expanding into the south west allows us to build the strength of the Spar brand investing into proposition and value across stores and retail partners supported with an improved supply chain network that delivers scale, service and efficiency.
“Our focus will be on investing in our customer experiences, supporting growth of our new independent retailers, and continuing to invest in and nurture our colleagues and local communities across the region, reinforcing our key values of ‘Striving for Excellence and Building a Better Future’.”
AF Blakemore chairman Peter Blakemore added: ”As a family business with more than a century of history, we have always believed in long-term investment in the Spar brand and the independent retailers we serve.
“This expansion into the south west reflects that commitment. It strengthens the Spar network, supports our retail partners, and creates new opportunities for colleagues and communities across the region.
“I want to take this opportunity to thank the AF Blakemore team, who have been instrumental in enabling this acquisition and extend a warm welcome to our new wider colleagues, retailers and communities.”
AWG MD Mike Boardman said: “With our owners having decided to seek a new owner for AWG and the Spar brand in the south west of England, we are very pleased with this positive transaction which will strengthen the Spar brand in the south of England and allows the majority of our stores and colleagues, as well as all retail customer relationships, to transition to AF Blakemore and become part of a highly regarded family business, focused on excellence and inclusivity.
“We know our retailers and colleagues will continue to thrive under their ownership and this deal creates many new opportunities for the future.”
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