Makro snapped up by rival Booker
Wednesday 30 May 2012
Cash and carry giant Booker today moved to snap up struggling rival Makro in a deal expected to add more than a million customers to its books.
Booker, which operates 172 branches and mainly supplies caterers and local shops, said the planned acquisition of German-owned Makro UK will give it a larger slice of the market for small and medium sized businesses.
Makro UK, which has been valued at £139.7 million under today's cash and shares deal, started life in 1971 in Eccles in Manchester and has 1.1 million customers. It generated sales of about £800 million in 2011.
Makro's German parent Metro - the world's fourth biggest retailer - will get a near-10% stake in Booker, valued at about £123.9 million, under the deal.
There are 30 Makro sites in the UK but the business has under-performed for several years and made losses of £63.2 million last year as it struggled amid fierce competition in the wholesale sector.
The deal, which needs shareholder approval, marks another step in the turnaround of Booker under former M&S director Charles Wilson.
Since taking over the company in 2005, he has returned it to profit and overseen the acquisition of smaller wholesalers Blueheath, Ritter Courivaud and Classic Drinks.
Mr Wilson said: "Through working together, Booker and Makro UK will improve choice, prices and service for retailers, caterers and SMEs throughout the UK."
Booker has some 10,000 staff and nearly half a million customers. It owns its own retail fascia - the yellow Premier brand - which is used by some 2,500 independent retailers.
Shares in Booker jumped 7% today.
Nicola Mallard, an analyst at Investec, said: "This looks like an excellent deal for Booker.
"It has proved it can turn struggling cash and carry businesses around and with another £800 million on the top line, this will produce a stronger business with enhanced growth prospects."
Regular cast member Ste Hay, played by Kieron Richardson, is about to test TV boundaries
- 1 Lee Evans announces retirement from comedy on The Jonathan Ross Show
- 2 Pirelli calendar 2015: The problem with 'plus-size' models like Candice Huffine
- 3 These grandmas smoking weed for the first time are wonderful
- 4 Woman opens professional cuddling shop – gets 10,000 customers in first week
- 5 Angelina Jolie confuses everyone with 'ay up me duck' East Midland's greeting to Derby actor Jack O'Connell at awards show
Jeff Fletcher dead: Britpop guitarist is decapitated by lorry in horrific traffic accident
These grandmas smoking weed for the first time are wonderful
Jimmy Ruffin dead: Motown legend, who wrote 'What Becomes of the Brokenhearted', dies aged 78
New York snowstorm: Five dead and state of emergency declared as 'wall of snow' buries Buffalo
Woman opens professional cuddling shop – gets 10,000 customers in first week
G20 summit: Enter Putin. Accompanied by four warships. To the sound of mockery
'Muslims pre-date Columbus in discovering America,' says Turkish president Erdogan
David Cameron 'compares Vladimir Putin’s Russia to Nazi Germany' ahead of tense meeting
Former Tory PM Sir John Major says 'we would not have an NHS without migrants'
France 'blocks' Russian sailors from boarding a warship
G20 summit: David Cameron warns Vladimir Putin that Russia's relationship with the West is at a 'fork in the road' over Ukraine
iJobs Money & Business
£20000 - £25000 per annum + OTE £35,000: SThree: We consistently strive to be ...
£50000 - £90000 per annum + benefits: Ampersand Consulting LLP: Markit EDM (CA...
$175 - $200 per annum, Benefits: full benefits: Carlton Senior Appointments: P...
Not specified: Carlton Senior Appointments: Senior MD Financial Advisor - San ...