Booker buys troubled cash & carry rival Makro in £140m deal

BOOKER is set to take over cash-and-carry rival Makro UK after a failed attempt by its German parent to revive the loss-making British operation.

The cash and shares deal values Makro’s network of 30 sites at £139.7 million. The business, which serves more than one million customers, made a pre-tax loss of £63.2m in 2011 despite appointing a new management team last summer.

The deal is not expected to lead to any store closures, a Booker representative said, with the hope there will be “opportunities on both sides” of the business. It has not yet been decided whether the Makro name will be retained.

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Owned by German retail group Metro, Makro UK has Scottish branches in Aberdeen, Edinburgh and Glasgow.

Meanwhile, 22 of Booker’s 172 UK sites are north of the Border, employing more than 1,000 people.

Booker, which owns the Premier store fascia used by 2,600 independent shops, focuses primarily on food and drink supplied to the caterers and retailers that make up the majority of its client base.

Makro stocks a much wider range – more than three times that of Booker – ranging from household goods and furniture to toys and games. Most of its customers are small and medium-sized enterprises.

Booker intends to make part of the Makro range available through its network as it builds on a recovery that returned the group to profit in 2009 after several years of losses. Chief executive Charles Wilson said the deal would improve choice, price and service for customers of the combined operation.

“Together we will offer a wide range of foods and non-foods to our customers,” Wilson said. “The board is confident that this will enable us to continue to generate value for shareholders.”

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