Booker Group, the FTSE 250 food wholesaler, is to buy Makro UK, a subsidiary of the huge German retailer Metro, in a combined share and cash deal.
Makro is also a wholesale business, which even Metro describes as "challenging". Nevertheless, Booker says the transaction will enable it to become the "UK's leading wholesaler to caterers, retailers and small and medium sized enterprises."
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Based on Booker's closing price on May 29th, the deal values values Makro UK at £139.7m.
Commenting on the proposal, Booker's Chief Executive, Charlie Wilson said: "Through working together, Booker and Makro UK will improve choice, prices and service for retailers, caterers and SMEs [small-to-medium enterprises] throughout the UK. Together we will offer a wide range of foods and non-foods to our professional customers, via the internet, delivery and cash and carry."
Metro's Chairman Olaf Koch added: "we are convinced that this new set-up meets all requirements for future success in the UK, while allowing Metro Group to further concentrate on countries within our strategic focus."
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