Musgrave set for €90m Londis takeover

Musgrave is set to take over the Londis convenience store business in a £60m (€90m) deal revealed today.

Londis – owned by the shopkeepers who hold shares in the wholesaling and distribution operation – is being sold to Musgrave.

The proposal comes five months after a previous £40m (€60m) offer from Musgrave stalled when it emerged four Londis executives stood to net £20m (€30m) because of a clause in their bonus scheme.

The bid process was subsequently restarted with the directors agreeing to a one-off payment of £2m (€3m).

The new deal means the share of the sale proceeds for almost 2,000 shopkeepers will rise from £10,139 (€15,274) previously to £31,266 (€47,100) under today’s agreement.

Londis said the offer from Musgrave had not been the highest on the table but that future trading arrangements with Musgrave would provide the best option for shopkeepers in the running of their businesses.

The bid process, which was managed by KPMG Corporate Finance, attracted interest from across the retail sector with approaches thought to have come from the Co-op, Iceland owner Big Food Group and off-licence chain Thresher.

The proposal will now be put before shareholders at an extraordinary general meeting.

Musgrave is privately owned and has food distribution operations in Ireland, Spain and the UK.

Eoin McGettigan, executive chairman of Musgrave UK, said the company would provide “total support” to retailers in allowing them to grow their stores.

He added: “Musgrave has a profound commitment to the independent grocery retail sector. Our 128-year heritage of working with independent retailers gives us a level of expertise and know-how which is unique in British retailing.”