McColl’s has kicked off its own discussions with Sainsbury’s as Nisa’s takeover talks with the supermarket giant continue.
McColl’s is Nisa’s biggest account, making up almost 40% of its revenue, but the talks with Sainsbury’s on Friday to discuss the future of Nisa have prompted suggestions that the multiple retailer could strike a new deal with Sainsbury’s.
Nisa has several contracts with McColl’s – one of them ends next year, while the others run through to 2020. It is believed by city analysts that a supply deal between Sainsbury’s and McColl’s could be worth up to £2bn.
One insider confirmed to Retail Express that “Sainsbury’s offer was not conditional on Nisa retaining the McColl’s contract”.
Last month, Nisa entered into exclusive discussions with Sainsbury’s on a possible £130m takeover. The wholesaler reported its annual results at the end of last week, recording pre-tax profits of £2.8m for the year to April 2, up from a £5.4m loss in 2016.
Its sales fell by 2.6% to £1.3bn, which it blamed on the loss of the My Local contract after the group collapsed in June last year.
“Nisa is well placed to continue the execution of its three-year strategy, to grow profitably and create a sustainable business model for the benefit of all its members,” said Nisa CEO Nick Read.