Spar South Africa to buy 80pc of BWG for €55m
Spar South Africa has entered into an agreement to buy an 80pc stake in BWG group for €55m.
BWG owns Spar in Ireland and services more than 1,100 stores with annual revenues of €1.2bn.
Its brands here include Spar, EuroSpar, Mace, ValueCentre and XL and it has 35pc of the Irish convenience store market.
Spar South Africa is a wholesaler and distributor to over1,800 independent retailers spread across Southern Africa with annual sales of around €3.5bn and a market capitalisation of approximately €1.5 billion.
Today’s announcement also secures a further reduction in BWG’s borrowings following a buyback of exiting banks’ debts. This further reduction in debt comes on top of that achieved as part of a successful refinancing concluded in November 2013, which also saw BWG agree new five year banking facilities.
These facilities have been reaffirmed by BWG’s lenders as part of this transaction with Bank of Ireland and AIB increasing their commitment, the company said today.
The new partnership will have up to €100m to invest in the expansion of BWG’s leading wholesale and convenience retailing operations over the next five years.