Co-op steps up Nisa acquisition with £143m offer
The Co-op Group has stepped up its move for convenience grocery chain Nisa with a £143 million offer, subject to approval from the Competitions and Markets Authority (CMA).
The offer consists of buying 100% of the shares in Nisa for up to £137.5 million, plus a further £5.5 million in associated costs.
Nisa, which operates as a member-owned wholesale and retail company, has unanimously recommended the offer to its shareholders, who would receive an equal initial payment, along with a deferred share payment payable over a three-year period and additional rebates payable over four years.
“The Co-op offers the right blend of buying capability, convenience expertise, and respect for the heritage of our business, to enable our members to fully thrive in this new partnership,” commented Nisa chairman, Peter Hartley.
As part of the deal, the Co-op would also take on the existing Nisa debt of £105 million.
Discussing the deal, Co-op Food chief executive, Jo Whitfield, said: “Over the past three years, Co-op Food has been completely transformed through a convenience-led focus on delivering great value products for our members and creating real value for them and their communities.”
“Co-op and Nisa have achieved so much on their own to support local communities, but together I believe we can go from strength to strength.
“If our offer is accepted by Nisa members and approved by the CMA, we can deliver a win-win for two member-led, community-focused organisations, and in the process create a distinctive footprint within the growing UK convenience retail sector.”
Co-op plans to keep Nisa’s 3,200 stores as a standalone business and brand.