German retail leader Metro AG has announced that it has reached an agreement with UK-based Booker Group to combine its Makro UK wholesale business in a bid to form a strategic partnership in the UK.
The deal sees Booker acquire all 30 UK stores and all operational assets of Makro UK from Metro, while in return Metro will receive 9.99 per cent of Booker's current issued share capital – which it must hold for a minimum of 12 months – as well as a cash payment of £15.8m (€19.8m).
'We see a perfect fit between both businesses as Booker focuses on caterers and independent retailers, while Makro, with its self-service wholesale, focuses on hotels and restaurants as well as small service companies,' said Charles Wilson, chief executive of Booker. 'Together, we will be able to offer more choice at better prices, with perfectly tailored services to our customers. This will help us to become one of the UK's leading wholesalers to caterers, retailers and small- and medium-sized enterprises, with a full range of food and non-food.'
Olaf Koch, Metro Group's chairman of the management board, added: '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 setup meets all requirements for future success in the UK, while allowing Metro Group to further concentrate on countries within our strategic focus.'
The transaction is expected to be completed by the end of July, and first requires approval by Booker shareholders, while the group intends to hold on to the Makro brand, according to Wilson.
'We look forward to working with the people at Makro to jointly improve our services and offerings to retailers, caterers and small- and medium-sized businesses in the UK,' he added. 'We are also looking forward to working with the team at Metro Group as strategic partners.'
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