BWG Group, which manages the Spar franchise in Ireland, announced that SPAR South Africa is to invest €55 million in a joint venture with the its management team to acquire the BWG group of companies.
SPAR South Africa, which boasts annual sales of around €3.5 billion and a market capitalisation of approximately €1.5 billion, will take 80% of the new venture, with the remaining 20% owned by Leo Crawford, John Clohisey and John O’Donnell.
Today’s announcement also secures a further reduction in BWG’s borrowings following a buyback of exiting banks’ debts. This further reduction in debt comes on top of that achieved as part of a successful refinancing concluded in November 2013, which also saw BWG agree new five year banking facilities.
These facilities have been reaffirmed by BWG’s lenders as part of this transaction with Bank of Ireland and AIB increasing their commitment.
The new partnership will have up to €100 million to invest in the expansion of BWG’s leading wholesale and convenience retailing operations over the next five years.
BWG will continue to be led by Group CEO, Leo Crawford, and the existing management team.
Commenting on the new partnership, Leo Crawford said: “This is a very positive and exciting development for BWG. In SPAR South Africa we have secured a major international retail player as a strategic partner and a long-term investor in our business. We have known SPAR South Africa for many years and they are a great fit for BWG.
"We look forward to working with their team to accelerate the expansion of our operations and the growth of our wholesale and retail businesses in Ireland and the South West of England.”
