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Duke Street / SandpiperCI sell their Channel Islands large format stores
SandpiperCI, the leading independent retail operator in the Channel Islands, which is part owned by Duke Street and Europa Capital, has announced that contracts have been exchanged for the sale of its five large supermarkets to Waitrose.
The deal is subject to the approval of the Jersey Competition Regulatory Authority and is not expected to complete before 31st October 2010. Financial details of the transaction have not been disclosed.
Duke Street and Europa Capital, the European real estate investment management group, acquired SandpiperCI in July 2007. They have worked closely with management to grow the business through a strategy of streamlining assets and improving both customer service and choice. Since 2007, the business has invested significantly in both its large and small format retail offering and has made a number of disposals including interests in pubs, soft drinks and property, delivering on Duke Street’s and Europa Capital’s plan to refocus SandpiperCI on its core activities.
Following this sale, Sandpiper CI will remain the leading independent retail operator in the Channel Islands, and will continue to operate its remaining 28 grocery stores under own fascias and to grow its franchise businesses trading under the Marks & Spencer, Iceland, Costa Coffee, Robert Dyas, and Pasty Presto fascias. Discussions with other potential franchise brands are progressing well and new stores for Hotel Chocolat in both islands have already been announced. SandpiperCI will continue to operate Cimandis, the food service supplier, together with its two hotels in Guernsey - St Pierre Park and La Trelade.
Commenting on the sale, Charlie Troup, Partner at Duke Street, said:
“This latest transaction forms part of our ongoing strategy to reshape the SandpiperCI business and to reposition its activities. This transformation work has made today’s sale possible. It is good news for the group, great for consumers and leaves us excited about the prospects for the remainder of SandpiperCI.”
Noel Manns, Principal at Europa Capital said:
“Our strategy has been to utilise our collective expertise to manage the SandpiperCI business in a way which is value enhancing, and in doing so is improving customer service levels in the Channel Islands and benefiting the local economy. This transaction will increase consumer choice within the region and allow SandpiperCI to continue to grow its ongoing business.”
Sandpiper CI chief executive Tony O’Neill, said:
“The performance of our supermarkets over the last three years has been very encouraging. However, now is the time to hand them on to a larger operator, which will allow us to focus on the development of our smaller stores and continue to build on our burgeoning franchise business. As the leading retailer in the islands, there is a high level of interest from several key UK non-food brands in working with us to establish their offer locally. We expect further announcements in due course”.
SandpiperCI was advised on the transaction by McQueen.