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Bids, Mergers and Takeovers

B&M takes over Heron Food Group

02 August 2017 08:20

B&M European Value Retail subsidiary, EV Retail, has acquired Heron Food Group, a discount convenience retailer operating predominantly in the North of England with 251 stores. B&N said that for the year ended 31 December, Heron delivered revenues of £274.4m, EBITDA of £19.1m, profit before tax of £8.6m and had gross assets of £93.5m.

Like-for-like revenue growth in the year was 3.0%.

B&M said the business currently employed c.3,800 people and had c.1,200 SKUs, including ambient, frozen and chilled foods.

It said Heron's stores averaged c.2,500 sq ft of retail space compared to B&M's UK average of c.19,000 sq ft.

It said the total enterprise value of the transaction was £152m including the debt assumed of the Heron group.

B&M said an initial cash consideration of £112.1m was paid on exchange and completion of the acquisition today.

It said that 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 was included in the £152m enterprise value figure.

It said the initial cash consideration was satisfied from B&M's existing cash resources and facilities.

At 8:20am: (LON:BME) BM European Value Retail share price was +1.95p at 361.65p

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