In more consolidation in the convenience store sector, B&M European Value Retail (LON:BME) has snapped up discount chain Heron Food for £152mln.
The consideration includes Heron's debt and a deferred cash consideration of up to £12.8mln.
B&M, which has already paid £112mln in cash, expects the acquisition to enhance earnings immediately.
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FTSE 250-listed, B&M already operates 543 stores in the UK and said the customer profiles of the two chains are similar.
Heron has 251 stores predominantly in the North of England.
In 2016, Heron recorded revenues of £274mln, underlying profits [EBITDA] of £19.1mln and profit-before-tax of £8.6mln while like-for-like revenues grew 3%.
B&M shares were slightly higher in mid-morning trading, rising 3.9p or 1.08% to 363.6p.
Convenience stores are a sector that is consolidating rapidly with Tesco currently in the process of buying Booker, which owns Budgens and Londis, Sainsbury’s reportedly buying Nisa and McColl’s yesterday agreeing a supply deal with Morrison’s.
