Tesco is to take an even bigger share of the UK’s fast-growing local store market by buying family-owned convenience store chain Adminstore.
The £53.7 million deal puts Tesco in a stronger position in the sector that is dominated by the Co-operative Society.
Adminstore's chain of shops is in the sought after high streets of London, mainly under the Europa, Cullens and Harts brands. Tesco will rebrand all three to become the supermarket's own Tesco Express outlets.
This is the latest development in a string of mergers and acquisitions that has made the UK's traditionally fragmented convenience store market increasingly competitive in recent years.
The Co-op has been undisputed market leader since its acquisition of Alldays in 2002, the same year that Tesco made its ambitions clear with the purchase of 870 T&S convenience stores.
The UK’s number one multiple said today that it will only hold around six per cent of the convenience store market after the acquisition of Adminstore, which is conditional on shareholder approval and regulatory clearance.
In the 12-months to September 2002, Adminstore recorded pre-tax profits of £2.1m, on turnover of £72.8m. The sale will provide a windfall for managing director Jitu Patel, who started the business from a single shop in 1979.
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