21 May 2015

BOOKER GROUP PLC

Proposed acquisition of Londis and Budgens in Great Britain for £40 million

Booker Group plc ("Booker"), the UK's leading food wholesaler and Musgrave Group plc ("Musgrave"), are pleased to announce that they have signed a sale and purchase agreement for Booker to acquire the entire issued share capital of Musgrave Retail Partners GB Limited ("GB Limited"), which comprises the Londis and Budgens businesses in Great Britain for £40 million (net of cash balances being acquired) to be satisfied in cash at Completion.  Completion of the Acquisition is conditional on the approval of the Competition & Markets Authority.

Londis is a symbol retail chain of 1,630 convenience stores.  Sales in the year to December 2014 were £504 million.  Budgens is a franchised chain of grocery stores.  It has 167 stores with sales of £329 million in 2014.  In the year to December 2014,  GB Limited had sales of £833 million and made an operating loss before exceptional items of £7.4 million.

Through Booker, Londis and Budgens joining forces, we will help independent retailers and consumers throughout Great Britain.  Following Completion, Booker's aim is to further develop the Budgens and Londis brands alongside Premier and Family Shopper, Booker's retail brands.  GB Limited's supply chain will be used for delivery to Booker retail customers.  Budgens and Londis customers will retain their brands, but will benefit from a better local and national supply chain.  This will help improve the choice offered by the retailers to the consumer.  The increased scale and operational efficiency should help lower prices, and retailers will benefit from a better delivery and cash and carry service.  This will help independents prosper amid the changes that are occurring in the grocery market.

Booker and Musgrave are also developing a strategic partnership agreement to facilitate opportunities and the sharing of competencies between the two groups. 

We anticipate that the Acquisition will be earnings neutral in the first complete year of ownership and earnings enhancing thereafter.

Commenting on the proposed transaction, Charles Wilson, Chief Executive of Booker, said:

"Booker, Londis and Budgens are joining forces to help independent retailers prosper throughout Great Britain.  This transaction should strengthen Londis, Budgens, Premier, Family Shopper and other Booker retailers, through improving choice, prices and service to consumers.  Overall it will help independent retailers prosper."

The Acquisition constitutes a Class 2 transaction for the purposes of the UK Financial Authority's Listing Rules and, as such, does not require Booker shareholders' approval.  The gross assets at December 2014 were £185 million.  Further announcements will be made in due course.

Investor Enquiries

For further information contact:

Tulchan Communications (PR Adviser to Booker Group plc)

020 7353 4200

Jonathan Sibun

Will Smith

Disclaimer

This announcement may include "forward-looking statements" with respect to certain of Booker's plans in relation to GB Limited, Londis and Budgens and its current goals and expectations relating to its future financial condition, performance and results.  These forward-looking statements sometimes contain words such as 'anticipate', 'target', 'expect', 'intend', 'plan', 'goal', 'believe', 'may', 'might', 'will', 'could' or other words of similar meaning.  By their nature, forward-looking statements involve known and unknown risks and uncertainties because they relate to future events and circumstances which may be beyond Booker's control, including, among other things, UK domestic and global economic and business conditions, market-related risks such as fluctuations in interest rates and exchange rates, the policies and actions of regulatory authorities, the impact of competition, the possible effects of inflation or deflation, the impact of tax and other legislation and regulations in the jurisdictions in which Booker operates.  As a result, Booker's actual future financial condition, performance and results may differ materially from those expressed or implied by the plans, goals and expectations set forth in any forward-looking statements, and persons receiving this announcement should not place reliance on forward-looking statements.

Booker expressly disclaims any obligation or undertaking (except as required by applicable law) to update the forward-looking statements made in this announcement or any other forward-looking statements it may make or to reflect any change in Booker's expectation with regard thereto or any changes in events, conditions or circumstances on which any such statement is based.  Forward-looking statements made in this announcement are current only as of the date on which such statements are made.

All oral or written forward-looking statements attributable to the Directors of Booker or persons acting on their behalf are qualified in their entirety by these cautionary statements.

None of the statements in this announcement are, nor are any intended to be, a profit forecast and none should be interpreted to mean that the profits or earnings per share of Booker in the current or any future financial period necessarily is or will be above or below the equivalent figure for any previous period.

ENDS