The Co-op Group has made an offer to acquire grocery chain and member-owned organisation Nisa Retail for £137.5m.
The Co-op has offered to provide Nisa Retail customers access to its range of products, while still remaining an independent company despite the acquisition.
In addition, Nisa has the opportunity to become a Co-op franchise, which gives the ability to leverage the Co-op brand and receive additional services.
The Nisa board has unanimously recommended the offer, which also comprises additional payment of deal costs of up to £5.5m to its shareholders.
Nisa Retail chairman Peter Hartley said: “While the business has made significant strides in recent years, we firmly believe that the combination with the Co-op is in the best interests of our members.
“The Co-op offers the right blend of buying capability, convenience expertise, and respect for the heritage of our business, to enable our members to fully thrive in this new partnership.”
The acquisition will allow the Co-op to support its presence in the wholesale convenience sector.
The move is aimed to increase its scale and buying power for the benefit of all customers and taking its product range to wider audience.
The Co-op Group Food CEO Jo Whitfield said: “This acquisition provides the opportunity to create an even greater and more compelling member-led presence within the UK convenience sector.
“If our offer is accepted by Nisa members and approved by the CMA, we can deliver a win-win for two member-led, community-focused organisations, and in the process create a distinctive footprint within the growing UK convenience retail sector.”
The acquisition will also see the Co-op assuming Nisa’s debt of £105m.
Image: The Co-operative Tilehurst, run by the Co-operative Group. Photo: courtesy of Kaihsu Tai/Wikipedia.