Booker Group, the food wholesaler, is set to buy Budgens and Londis supermarkets for £40 million, primarily in order to take advantage of supply chain efficiencies.
The company has signed a deal to buy GB Limited – the business which owns the Londis and Budgens businesses in the UK.
Booker said its aim was to further develop the Budgens and Londis brands alongside its own Premier Stores and Family Shopper retail brands. GB Limited's supply chain would be used for delivery to Premier and Family Shopper stores.
“Budgens and Londis customers will retain their brands, but will benefit from a better local and national supply chain,” Booker Group said. This would help improve the choice of products offered to consumers while creating economies of scale would help lower prices.
“Retailers will benefit from a better delivery and cash and carry service,” Booker added.
In the UK Londis has 1,630 convenience stores with 2014 UK sales of £504 million. Budgens, a franchised chain, has 167 stores with sales of £329 million in 2014. In 2014 GB Limited made a loss of £7.4 million.