PwC advises B&M on its acquisition of the Heron Food Group

03/08/17

PwC’s Transaction Services team has advised B&M, the value retailer, on its acquisition of the Heron Food Group. PwC provided financial, tax and IT due diligence and SPA advice to B&M.

B&M was formed in 1978 and is now one of the leading retailers in the UK. From its first store in Blackpool, Lancashire, B&M has grown to over 500 stores and employs some 22,500 people. The acquisition of Heron will enable B&M to develop and roll out a complementary, proven and profitable discount convenience grocery brand.

The Heron Food group has 251 stores, operating predominantly in the North, and employs 3,800 people. Heron is currently managed and owned by Andrew, David and Michael Heuck. Michael Heuck is set to retire from the business, whilst Andrew and David Heuck will remain in their existing trading and finance roles with Heron. B&M, alongside the existing Heron management team, will continue to expand and develop the Heron business, initially through the addition of between 10 and 20 new stores per annum.

PwC's financial due diligence team was Jonathan Cooper, Patrick Meades, Andrew Baldwin, Pat Luker and Chris Lodge. The tax team was Simon Viner and Usman Choudhary; and IT due diligence was undertaken by Asam Malik and Adam Bellinger. SPA advice was provided by Trevor Milne and Anthony Jones.

Simon Arora, Chief Executive of B&M, commented:

"B&M is already the UK's leading general merchandise discount retailer, serving 4 million shoppers per week. The addition of a complementary, proven discount convenience grocery brand to our own structural growth story gives the combined business an even longer, exciting growth runway.”

“I look forward to working with David and Andrew Heuck and the Heron team to drive forward our shared ambition to deliver exceptional value for money to shoppers across the UK."

Jonathan Cooper, PwC's Head of Deals for the North West, added;

"B&M has become synonymous across the UK as a value retailer, offering consumers great products and fantastic value. At PwC we are delighted to have been able to play an important role in supporting this transaction which greatly expands the group's product offering and strengthens its consumer proposition. We wish them every success in the future.” 

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