Value retailer B&M has announced the acquisition of discount convenience retailer Heron Food Group Limited.
B&M, which has its headquarters in Liverpool, hopes that the £152m acquisition will enable it to develop a profitable discount convenience grocery brand.
Convenience is one of the largest areas of growth in grocery retailing today and the board of B&M believes that Heron’s expertise, when supported by B&M’s retailing can bring an attractive new customer value proposition in an expanding sector of the grocery market.
Heron is currently managed and owned by Andrew, David and Michael Heuck. Michael Heuck is retiring from the business as planned, whilst Andrew and David Heuck remain in their existing trading and finance roles with Heron.
David and Andrew Heuck commented: "We are delighted to be joining forces and working with B&M. Both companies share a vision to bring great value to customers and the combination of Heron's skills with the expertise and resources of B&M will mean the creation of a potent new force in the structurally growing convenience sector.
“Today’s transaction secures for Heron’s loyal and hardworking workforce a perfect long term home within the B&M Group and provides an exciting platform for the roll-out of more Heron stores nationally."
B&M, alongside the existing Heron management team, will continue to expand and develop the Heron business, initially through the addition of between 10 and 20 new stores per annum. The Board expects the acquisition to be immediately earnings enhancing.
Simon Arora, CEO of B&M commented: "B&M is already the UK's leading general merchandise discount retailer, serving 4m shoppers per week. 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.
“I look forward to working with David and Andrew Heuck and the Heron team to drive forward our shared ambition to deliver exceptional value for money to shoppers across the UK."