Supermarket and corner shop brand Costcutter has been sold to Bargain Booze owner Bestway Wholesale.
It’s the second major deal for the Liverpool-based Bibby Line Group this week, after Menzies Distribution agreed to buy Bibby Distribution. The company has not disclosed the value of either deal.
Costcutter Supermarkets Group (CSG) brands include Mace, Kwiksave, Supershop and Simply Fresh. Those brands are used by more than 1,500 independent retailers across the UK.
Bibby Line Group said Costcutter had reported a “significantly improved performance over the last two years”. In 2019 its sales rose by 10% to £426m, with EBITDA rising by more than £9m to £5.1m.
Bestway’s brands include Bargain Booze, Best-One, Wine Rack, Select Convenience and Central Convenience.
John Cresswell, CEO of Bibby Line Group, said: “Over the last two years, CSG has transformed itself into a profitable and much stronger business, and I’d like to thank the team for their unstinting commitment and passion for helping independent retailers thrive.
“We hope CSG will continue to prosper and grow as it becomes part of a larger business with deep retail expertise.
“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 Bestway deal is conditional on Financial Control Authority approval, which Bibby expects early next year.
Family-owned Bibby, which traces its history to 1807 and is best known for its shipping activities, says tonight’s agreement “completes the planned strategic realignment” of its portfolio.
Its remaining companies include Bibby Financial Services and Bibby Marine.
Dawood Pervez, managing director of Bestway Wholesale, said: “Costcutter is a great brand with a long heritage and a history of success alongside industry-leading and loyal retailers, with some of the best in-store execution in the business.
Stay up to date with our daily newsletter, email breaking news alerts and weekly round-ups. To sign up, find out more and see all of our newsletters, follow the link here
“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.
“Clearly, there will be benefits of joining forces for our retailers, for shoppers, and for suppliers”.