SPAR South Africa has entered into an agreement to acquire an 80% stake in the BWG group of companies. The activities of the three operating companies that make up the BWG Group are as follows:
- BWG Foods is a wholesaler and distributor of grocery products to the retailing and catering sectors in Ireland;
- Triode Newhill is a property management company; and
- Appelby Westward is the trading entity in South West England that trades under the SPAR brand in that region.
In terms of the agreement, SPAR will subscribe for 80% of the holding company of the BWG Group, for a purchase consideration of EUR55 million. The BWG Group, whose turnover amounted to EUR1.2 billion in 2013, has a presence throughout Ireland and South West England, operating through its three wholly-owned operating companies, namely BWG Foods, Triode Newhill and Appleby Westward. The BWG Group owns the SPAR brand in Ireland as well as several other retail brands and oversees over 1,100 stores of which c. 850 are located in Ireland. These stores trade under the SPAR, Eurospar, Mace and XL brands, ranging from large format supermarkets to forecourt and neighbourhood convenience stores. The BWG Group also owns and operates a central distribution centre, a cash and carry operation with 23 Value Centre Cash & Carry outlets and through BWG Foodservice also supplies fresh and ambient products to the hospitality and catering sectors.