UK retailer Sainsbury's has acquired 24 stores from the Co-operative Group for 拢83 mln (EUR 93.3 mln), with a further 拢45 mln (EUR 50.6 mln) of fit-out costs being incurred. The 22 Somerfield branded stores and two Co-operative-branded stores in the UK have a net selling area of 22,000 m[sup]2[/sup]. This includes 13 freehold and long leasehold stores comprising 12,000 m[sup]2[/sup].
UK retailer Sainsbury's has acquired 24 stores from the Co-operative Group for 拢83 mln (EUR 93.3 mln), with a further 拢45 mln (EUR 50.6 mln) of fit-out costs being incurred. The 22 Somerfield branded stores and two Co-operative-branded stores in the UK have a net selling area of 22,000 m2. This includes 13 freehold and long leasehold stores comprising 12,000 m2.
The transaction will be funded from existing cash resources and facilities. Sainsbury's said 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 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 20,000 m2 of additional selling space, with five stores becoming Sainsbury's Locals, adding 1,800 m2.
