Spar Group is closing in on the sale of its UK business Appleby Westward Group, with a deal “substantially agreed”, it has revealed in a trading update for the 18 weeks to 30 January.
The South African retail group said discussions over the disposal had advanced, with the transaction structure now substantially agreed, subject to final documentation and customary approvals.
The proposed structure is designed to ensure an orderly transition while limiting ongoing financial exposure for Spar Group.
The board added that it remained focused on concluding the sale in a way that simplified the Spar Group’s geographic footprint, strengthened balance sheet resilience and supported disciplined capital allocation.
Management said it did not anticipate needing to make a cash injection to complete the sale and would provide a further market update once binding agreements had been executed, the trading update said.
Spar Group decided to divest AWG last year, along with its business in Switzerland, as part of a “strategic realignment” to focus on its core markets of South Africa and Ireland, where its model “thrives”.
AWG has been owned by Spar Group since 2014, when it acquired an 80% stake in Irish Spar franchise owner BWG for €55m. The business supplies around 300 independent Spar convenience stores across the south west of England, in addition to its company-owned shops.
The sale has drawn attention in the UK convenience sector after Spar Group CEO Angelo Swartz acknowledged the process had been “slower than expected”, in the results for the year ending 26 September 2025, published on 8 December.
While Spar Group has not yet confirmed the buyer, industry sources have tipped AF Blakemore, which operates the Spar franchise in the Midlands, Wales, London, and the south east, as a likely candidate.
No comments yet