Conviviality buys 26 stores in £1.7m deal6th May, 2014 by Lauren Eads
Conviviality Retail Plc has announced its acquisition of 26 Rhythm and Booze stores in a deal worth £1.7 million.
Conviviality Retail Plc is one of the UK’s largest off-licence chains with 575 franchisee-operated stores which includes Bargain Booze, Bargain Booze Select Convenience and Thorougoods.
This acquisition will add a further 26 Rhythm and Booze stores – a drinks retailer based largely in Yorkshire and the north east of the UK and a subsidiary of Bibby Retail Services Limited – to its portfolio.
Diana Hunter, chief executive officer of Conviviality Retail Plc, said: “This acquisition in entirely in line with our strategy for geographic expansion. The 26 stores provide opportunities for us to extend our reach into Yorkshire, offering growth opportunities for the company and our franchisees.
“The 26 stores provide opportunities to expand our Bargain Booze, Select Convenience and Wine Rack fascias.”
For the year ending 31 December 2013, the 26 Rhythm and Booze stores set to be acquired, generated revenues of £13.68 million and net profits of £0.05 million.
Five of the stores are freehold properties with a combined value of £0.54 million, and the remainder are leasehold.
Conviviality, which funded its acquisition by paying £1.5 million in cash with a further £0.2 million still under consideration, intends to retain all store staff and rebrand the stores with completion planned for 16 May 2014 following a consultation period.