Costcutter in £35 million deal to boost growth

01 August, 2013

Costcutter Supermarkets Group has signed a £35 million refinancing deal with Barclays to boost its ambitious growth plans.

It follows the news that Costcutter and Palmer & Harvey have formed a joint venture company with a combined buying power of £5 billion in a deal designed to counter the increasing power of the supermarkets.

The move sees Costcutter take over management of P&H’s Mace, Supershop and Your Store convenience brands, bringing the combined retail estate of the two companies up to around 2,400 stores.

P&H will focus on its core wholesaling business and will supply the combined retail estate.

The firm said the three-year term of the refinancing will “support both business growth and the current transition period”.

Bob Marshall, financial director of Costcutter Supermarkets Group, said: “Having the support of Barclays for the next three years as the business manages the current period of transition and embarks upon its growth strategy is very positive. In Barclays, we believe we have the ideal partner for supporting the business investments we need to make.”

Ben Andrews, Key Client Director at Barclays, added: “Costcutter Supermarkets Group has proven resilient through the cycle and Barclays support has been very much based on our belief in the quality of the management team and the consistent performance of the business.

"As a north-east headquartered business with a national footprint, Costcutter Supermarkets Group is a key name in our region and we look forward to developing the relationship further and supporting the company’s growth in the years ahead.”

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