Bestway Wholesale has bought Costcutter from Bibby Line Group for an undisclosed sum.
The purchase takes Bestway’s annual turnover to almost £3bn, and grows its symbol, franchise, and company store retail estate to more than 3,795 stores in the UK.
Approximately 1,500 stores branded under Costcutter, Mace, Supershop, Kwiksave, and Simply Fresh will join Bestway’s current retail brands: Bargain Booze, Best-One, Wine Rack, Select Convenience and Central Convenience.
The deal is subject to FCA approval. On completion in the first quarter of 2021, Costcutter will become part of Bestway’s retail division and continue to operate as normal. Darcy Willson-Rymer, Costcutter’s CEO of nine years, will leave the business at this point.
Costcutter’s existing supply contract with Co-op/Nisa is not affected by the acquisition and Nisa will continue to supply Costcutter stores.
The deal makes family-owned Bestway, which also operates across the pharmacy, banking and cement sectors, the 11th-largest independently owned multinational conglomerate in the UK.
Costcutter employs around 500 people and has enjoyed a strong couple of years. Its sales rose by 10% to £426m in 2019; sales and profitability continued to grow this year as consumers increasingly shopped locally because of the Covid-19 pandemic.
Bestway Boss 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.
“The acquisition of CSG by Bestway Wholesale enables us to further build on our solid foundations in Independent Retail, allowing us to expand on our already established, and highly respected, fascias and national network of stores.
Pervez said there would be benefits of joining forces for retailers, for shoppers, and for suppliers.
He concluded: “Independent retailers are vital hubs within their local communities that have become increasingly valued and appreciated by consumers – and government – for their services during the Covid-19 pandemic. We will continue to support and champion this sector and will be investing for its future alongside range, service excellence and technology. Our message to all our retailers is that ‘together we are stronger’ at a time of economic uncertainty, both with Covid-19 and Brexit ahead.”
