Supermarket chain takes on Nestor's stores in €10m deal
Galway-based Nestor's sold out of receivership
Joyce's Supermarket Group has agreed to buy the assets of Nestor's Supermarket Group in Galway, in a deal believed to be worth more than €10m.
The deal is a receiver sale handled by Grant Thornton, with AIB bankrolling the transaction with a debt package.
The transaction - if approved - will see Nestor's supermarkets rebranded under the Joyce name. Nestor's has outlets at Fr Griffin Road, Oranmore, Ballybane and Doughiska. It employs around 190 people.
Joyce's managing director, Pat Joyce, said his company was "always open to exploring opportunities for growth".
"Once the requisite approvals are obtained, we look forward to working with the employees at each of the locations to develop four new Joyce's supermarkets.
"We pride ourselves in providing a wide range of locally sourced products to customers throughout our existing stores and welcome the opportunity to offer the same level of quality in four additional Joyce's outlets."
Galway-based Joyce's, a family owned and operated business set up in 1951, said it was "committed to sustaining employment and increasing investment in Galway." It has outlets in Headford, Athenry, Tuam, Indreabhan and Knocknacarra.
"The proposed transaction would allow for additional career and promotion opportunities for both existing and new employees.
"Furthermore, local growers and suppliers will benefit from an enhanced route to market... Joyce's Supermarket Group would like to thank its advisers Mazars Corporate Finance for their advice and execution capability on this transaction," Joyce's said in a statement.
Aengus Burns and Paul McCann, of Grant Thornton, were appointed as receivers to the Nestor group earlier this year.
The group's most recently filed accounts, covering the year ending January 31 2015, show it had accumulated losses that were in excess of €4.1m.
"Despite the group having substantial net liabilities/bank debts at January 31, 2015, the directors believe it is appropriate to prepare the accounts on a going concern basis," the accounts state.
"A proposal involving a major restructuring of the bank debt is currently being negotiated with the group's bankers. The directors are confident that the outcome of the negotiations will be favourable.
"While the group is incurring losses at present, the directors expect that the group will be able to get back into profit in the near future."
The deal has a number of conditions attached, among which is receiving approval from the Competition and Consumer Protection Commission.
Sunday Indo Business