The Board of Nisa Retail Limited, the member-owned retail and wholesaling group, today (October 10) unanimously recommended to its shareholders an offer of up to £137.5m from The Co-op Group.
According to the Board, the offer, if successful, would bring significant immediate and long-term value for Nisa members, access to greater scale, access to the award-winning Co-op range – including the Co-op own label proposition, retention of their independence of operating their stores how they want, while also enabling them to remain part of a member-owned organisation within the growing UK convenience retail sector.
The Co-op Group’s offer to buy 100% of the shares in Nisa for up to £137.5m, plus the payment of associated deal costs of up to £5.5m, results in a total payment by the Co-op Group of up to £143m.
Nisa shareholders will receive an equal initial payment, a deferred share payment payable over 3 years, as well as additional rebates payable over 4 years.
Co-op would also take on the existing Nisa debt of £105m as well as providing additional benefits.
The terms of the acquisition, which remain conditional on the approval of Nisa members and CMA clearance, were ue to be explained to members today. The Co-op and Nisa teams will be out on the road at regional events in the coming weeks to explain the offer to members and answer any questions they may have. A vote of the membership will be held in early November.
Peter Hartley, Chairman of Nisa said: “The Board was unanimous in its decision to recommend the Co-op offer. While the business has made significant strides in recent years, we firmly believe that the combination with the Co-op is in the best interests of our members. 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.”
The offer is expected to be put to Nisa members to vote upon in November.
Read the full story in the October issue of Wholesale News, out next week.