UK supermarkets group Budgens was bought by privately owned Irish grocer Musgrave earlier today [Friday] in a deal worth £232m (US$347m), or £1.35 per Budgens share.
In August 2000 Musgrave, which also owns the SuperValu and Centra brands, paid German retailer ReWe £89.4m for its initial 28% stake in Budgens. It has also has convertible loan stock that takes its total holding to around 45%.
Musgrave’s MD Seamus Scally said: “We have come to know Budgens and its management well since the acquisition of our stake.
“We are now satisfied that Budgens represents the right base from which to develop our position in the grocery retailing market in Britain.”
Budgen’s CEO Martin Hyson meanwhile told Reuters that being part of Musgrave “will provide continued stability for employees and a further development in the Budgens concept for its customers”.
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By GlobalData“We consider this offer good value,” he added: “And, having received independent advice from Dresdner Kleinwort Wasserstein, the board are unanimous in recommending it to its shareholders.”
Musgrave intends to operate Budgens as an autonomous unit. The banner will remain and there will be no impact on Budgen’s 6,000 employees.
