Sainsbury’s Acquires Stores from the Co-operative Group
The stores have been purchased for £83 million and a further £45 million of fit-out costs will be incurred. The transaction will be funded from existing cash resources and facilities.
05/03/09 UK retailer Sainsbury's has announced the acquisition of 24 stores from the Co-operative Group, comprising 22 Somerfield branded stores and two Co-operative branded stores. The stores have a net selling area of 236,000 sq. ft., including 13 freehold and long leasehold stores comprising 131,000 sq. ft. The stores have been purchased for £83 million and a further £45 million of fit-out costs will be incurred. The transaction will be funded from existing cash resources and facilities. The acquisition will be slightly dilutive to earnings in the 2009/10 financial year and earnings enhancing in 2010/11.
Justin King, chief executive, said: "We are delighted to acquire these stores which are an excellent addition to our store estate and we are pleased to welcome 1,400 new colleagues to Sainsbury's."
Completion on these stores, which is conditional on necessary OFT approvals, will commence in May 2009 and conversion will take two to three months. The stores will be opened in the first half of 2009/10 and 19 stores will form part of the supermarket estate, adding 216,000 sq. ft. of additional selling space, with five stores becoming Sainsbury's Locals, adding 20,000 sq. ft.
