Discount retailer B&M has acquired convenience store operator Heron Food Group in a £152 million deal, as it increases its foothold in the grocery sector.
The deal means B&M will acquire Heron’s estate of 251 stores, which are predominantly found in northern England.
In a stock market announcement, B&M said its acquisition of Heron will enable it to “develop and roll out a complementary, proven and profitable discount convenience grocery brand”.
It also said the combination of the two retailers could deliver a “value proposition” in an expanding sector of the grocery market, and the deal would be “immediately earnings-enhancing”.
B&M plans to expand and develop Heron, initially through the opening of 10 to 20 new stores per year.
B&M chief executive Simon Arora said: “The addition of a complementary, proven discount convenience grocery brand to our own structural growth story gives the combined business an even longer, exciting growth runway.”
Heron, which employs around 3800 people, last year posted revenues of £274.4 million, earnings of £19.1 million and a pre-tax profit of £8.6 million.
The convenience retail company is currently managed and owned by Andrew, David and Michael Heuck.
Michael will retire from the business as planned, while Andrew and David remain in their existing trading and finance roles.