Bestway is to acquire Costcutter, marking the latest major symbol group acquisition in independent retail.
Sources close to the wholesaler and Costcutter confirmed to betterRetailing an announcement about the deal was imminent on 18 Dec. Bestway managing director Dawood Pervez confirmed the news exclusively to betterRetailing.
The deal is expected for completion in the first three months of 2021 under the Financial Conduct Authority’s approval. It will bring Bestway’s total retail store estate to 3,795, which includes 2,682 symbol and 195 centrally owned sites. It would mark Bestway’s latest major acquisition following its takeover of Conviviality Retail in 2018.
Under the terms of the deal, Costcutter’s brands, which include Mace, Kwiksave, Simply Fresh and four Co-op franchises, will continue to operate as normal. Costcutter’s existing supply deal with Nisa will also remain unaffected.
Bestway managing director Dawood Pervez 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.
“As part of Bestway Wholesale, the team at Costcutter will be able to build upon the amazing results they have been achieving inpartnership with their retailers, helping them to innovate and adapt to an ever-changing market in order to grow their businesses and sales.”
“We are keen to reassure Costcutter’s retailers that it is ‘business as usual’ and they will see no change in how they currently work with CSG. The existing CSG supply contract with Co-op/Nisa is not affected by the acquisition and Nisa will continue to supply CSG stores. The 2,000 Co-op SKU range has proven to be an important driver of footfall and sales, as well as providing CSG retailers with an exceptional range of fresh produce.”
Pervez will lead Costcutter, following the departure of current Costcutter CEO Darcy Willson-Rhymer. Willson-Rhymer said:
“Joining the Bestway family could not have come at a better time for our retailers. Joining a business of Bestway Wholesale’s size, scale, and expertise will unlock new opportunities to help CSG’s independent retailers thrive. This is a cause that I know Bestway is absolutely committed to.
“Right now, that means three things: helping our retailers navigate the challenges of the COVID pandemic, continuing to invest in the BDM support our retailers receive and the retailer sales growth we are able to deliver through Shopper First; and introducing new and innovative ways to engage shoppers and deliver the very best retail offer available.
“While I will not be part of Costcutter’s journey moving forward, it is exciting to see the fresh opportunities this acquisition will bring.”