EV Retail acquires Heron Food Group for £152m
UK-based EV Retail has acquired convenience retailer Heron Food Group for £152m
Heron operates 251 stores in the northern part of England, offering ambient, frozen and chilled foods.
Through the acquisition, EV Retail's parent company B&M European Value Retail (B&M) intends to develop and launch a complementary discount convenience grocery brand.
According to the company, Heron’s expertise and store portfolio will be complemented by its sourcing, retailing and store roll-out capabilities.
B&M CEO Simon Arora said: "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.”
B&M is planning to expand the Heron business by opening between ten and 20 new stores a year.
As of 31 December last year, Heron reported revenues of £274.4m, EBITDA of £19.1m, while profit before tax and gross assets respectively stood at £8.6m and £93.5m.
Founded in 1978, B&M operates more than 500 stores across the UK and reported revenues of £2.2bn in its annual report for the current year.
The company also operates 75 stores under the JA Woll brand in Germany.