Sainsbury has reached agreement on the key financial terms for the possible acquisition of Home Retail Group, valued at GBP1.3 billion. The deal value represents 63% premium to the closing price of a Home Retail Group share on 04 January 2016. With this deal, Sainsbury’s’ expects to generate EBITDA synergies of GBP120 million in the third full year after completion.

Details:

The combination of Home Retail Group and Sainsbury’s will have an opportunity to offer complementary products, focus on delivering quality products and services at fair prices, through an integrated, multi-channel proposition.

  • Food and non-food retailer of choice for shoppers, building on the strong brand heritages of both the businesses which are renowned for trust, quality, value and customer service.
  • Deliver profitable sales growth by offering shoppers the right combination of store location, range, speed and flexibility, across a wide range of products.
  • Enhance multi-channel capabilities including digital, store and delivery networks to provide fast, flexible and reliable product fulfilment to store and home.
  • Optimize the combined retail space together as they have attractive located stores across the UK, with an enhanced supply and delivery network and a strong presence across food and non-food categories