BWG is a leading food retail and wholesale distribution company with operations in Ireland and South West England.
The BWG Group owns the SPAR brand in Ireland with 421 SPAR stores and an estimated 35 per cent share of the Irish convenience store market.
The group currently services more than 1,100 stores, including 100 company owned stores, with a total annual turnover of approximately 1.2 billion.
[DATA SPP:The Spar Group Limited] is positive about this move and says it is important for its long term objectives.
“The transaction represents a unique opportunity for SPAR to acquire a synergistic business that furthers various strategic objectives and will add value to the company as a whole,” the company said.
(WATCH VIDEO: SPAR FY HEPS up 13%)
“These synergies will stem from a similar skill and market focus as both companies operate in the food retail, voluntary trading model and wholesale market segments, and the opportunity to share knowledge, technology, and product and industry best practice.”
Graham O’Connor the chief executive of SPAR said the company was very fortunate in as far as timing in terms of sequence of events was concerned.
“Other deals were better for them financially but they preferred our deal because of our expertise, association with SPAR, and our existing relationship with SPAR International,” noted O’Connor.
He further explained that the deal that opened in March had taken a long time to come to fruition.
The purchase consideration of 55 million euros for the 80 per cent stake in the BWG Group has been funded by a rand-denominated loan and supports compelling long-term return expectations, underpinned by a well-established retail network and positive economic fundamentals in Ireland.
The company says strong synergies exist between the businesses of SPAR and the BWG Group, particularly in relation to their retail models, wholesale businesses and logistics.