Spar Group is seeking a new owner for Appleby Westward Group (AWG) - with fellow Spar wholesaler AF Blakemore tipped to acquire the wholesale franchise.
In a market update, the South African retail group said “exclusive negotiations were underway” with a UK company that is “well positioned to further develop and grow AWG”.
AWG has been owned by Spar Group since 2014 when it took an 80% stake in Irish Spar franchise owner BWG for €55m. In addition to a number of company-owned shops, AWG supplies 300 independent convenience stores in the south west of England.
But AF Blakemore, which which operates the Spar franchise in the Midlands, Wales, London and the south east, has long wanted to consolidate the Spar network.
One leading wholesale source said: “Blakemore is the only name in the frame and it would make sense as it has been interested in this kind of growth for a long time.”
Another wholesale source who also believes Blakemore is the favourite, said Appleby Westward had not been widely marketed which ”makes it more likely that a buyer will be from within the existing Spar family”.
The other UK franchise owners are Henderson Group in Northern Ireland, CJ Lang in Scotland and James Hall in the north of England. All are family-owned businesses.
Spar Group said its decision to divest the business would have “no immediate impact” on AWG or Spar stores across the region, with “operations continuing as usual for its people, retailers, suppliers and customers”.
“AWG is a strong and attractive business for a new owner with great people, strong wholesale and logistics infrastructure and a long-established reputation and retail presence across the south west of England, where we have over 300 stores,” said AWG MD Mike Boardman.
“A new owner will also be able to capitalise on the significant capital investment programmes implemented by AWG in recent years.
“For now, it remains business as usual for AWG and we look forward to giving our people and partners an update on our future plans and the process to find a new owner for the business upon completion.”
Spar Group also announced plans to sell its business in Switzerland. The decision reflected “a strategic realignment”, with a renewed focus on prioritising investment in its core markets of South Africa and Ireland, where its “model thrives”.
The BWG Group works with independent retailers under the Spar Eurospar, Mace, Londis and XL brands.
Spar Group said it aims to concentrate its governance and management efforts on driving sustained growth and building long-term momentum within these key regions.
An AF Blakemore spokeswoman said: ”We are aware that as part of their financial results, Spar SA have announced the divestment of their UK business, AWG. We do not comment or speculate on announcements of this kind.”
No comments yet