Costcutter snapped up by Bestway after strong year of sales
Wholesaler Bestway has bought Costcutter from Bibby Line for an undisclosed sum in a significant move in independent retail.
Under the deal Costcutter will become part of Bestway Wholesale’s retail division and operate as normal.
“The acquisition of CSG by Bestway Wholesale enables us to further build on our solid foundations in Independent Retail, allowing us to expand on our already established, and highly respected, fascias and national network of stores,” Bestway’s managing director Dawood Pervez said.
Costcutter has had a strong year with sales rising 10 per cent to £426m, while Ebitda increased by more than £9m to £5.1m.
Approximately 1,500 of Costcutter’s stores will join Bestway’s brands which include Bargain Booze, Best-One and Wine Rack.
“Clearly, there will be benefits of joining forces for our retailers, for shoppers and for suppliers,” Pervez added.
Costcutter is currently supplied by Nisa but it is unclear how this will be affected following the acquisition.
Bibby Line, a financial services and shipping group, has owned the convenience store chain for nine years.
In 2018 Bibby Line reportedly rejected a £15m offer for Costcutter from Co-op but left the door open for further talks.
“Over the last two years, CSG has transformed itself into a profitable and much stronger business,” said John Cresswell, chief executive of Bibby Line. “This is also positive news for Bibby Line Group, completing the planned strategic realignment of our portfolio, further strengthening our Group balance sheet for future investment.”
The deal is expected to be completed in the first quarter of 2021 following approval from the Financial Conduct Authority.