Booker Group has announced an agreement with German firm Metro Group to acquire Makro for £139.7m.
The deal means Booker will further extend its reach in the UK wholesale market, adding 30 sites serving more than a million customers to its portfolio.
The proposed transaction will be in exchange for shares, with Metro taking a 9.99% share in Booker. As a result the two businesses have entered into a strategic partnership agreement for competence sharing.
Booker chief executive Charles Wilson said: "Through working together, Booker and Makro UK will improve choice, prices and service for retailers, caterers and SMEs throughout the UK. Together we will offer a wide range of foods and non-foods to our professional customers, via the internet, delivery and cash and carry. The board is confident that this collaboration will enable us to continue to generate value for shareholders."
Olaf Koch, Metro Group chairman, said: "In Booker, we have found the right buyer for our challenging UK business, which has shown an unsatisfying performance. Booker is very well positioned in the UK market, with a great brand perception and vast experience in managing product ranges and in customer services. Therefore we are convinced that this new set-up meets all requirements for future success in the UK, while allowing Metro Group to further concentrate on countries within our strategic focus."
By James Stagg
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