Business
Acquisition of Heron Food Group Limited
Acquisition of Heron Food Group Limited.
About this update from B&m European Value Retail Plc
[{"type":"text","content":"\n \nRNS Number : 8566M B&M European Value Retail S.A. 02 August 2017 \n\n \n2 August 2017 \nB&M European Value Retail S.A.\n \nAcquisition of Heron Food Group Limited \nB&M European Value Retail S.A. (\"B&M\"), the UK's leading multi-price value retailer, today announces the acquisition by its subsidiary, EV Retail Limited, of the entire issued share capital of Heron Food Group Limited (\"Heron\") a discount convenience retailer operating predominantly in the North of England with 251 stores. \n \nFor the year ended 31 December 2016 Heron delivered Revenues of £274.4m, EBITDA of £19.1m, Profit before tax of £8.6m and had Gross Assets of £93.5m as at 31 December 2016. Like-for-like revenue growth in the year was 3.0%. The business currently employs c.3,800 people and has c.1,200 SKUs, including ambient, frozen and chilled foods. Heron's stores average c.2,500 sq ft of retail space compared to B&M's UK average of c.19,000 sq ft.\n \nThe total enterprise value of the transaction is £152m including the debt assumed of the Heron group. An initial cash consideration of £112.1m was paid by B&M on exchange and completion of the acquisition today. Up to £12.8m of deferred cash consideration may become payable based on the EBITDA performance of the Heron group up to 31 March 2019; this is included in the £152m enterprise value figure. The initial cash consideration was satisfied from B&M's existing cash resources and facilities. \n \nThe acquisition of Heron will enable B&M to develop and roll out a complementary, proven and profitable discount convenience grocery brand. The customer profiles of Heron and B&M are similar and both formats are expanding successfully. Convenience is one of the areas of growth in grocery retailing today, although much of this growth to date has been based on premium pricing. The Board of B&M believes that Heron's expertise and attractive existing store portfolio, when supported by B&M's proven sourcing, retailing and store roll-out capabilities, can bring an attractive new customer value proposition in an expanding sector of the grocery market.\n \nHeron 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 ...