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CHAMPION OF THE DAY
TSC and Spinneys
in merger talks
Emirati chain might preserve its name
Negotiations for a merger or buyout are underway between owners of supermarket chains, Spinneys and The Sultan Center (TSC).
TSC is negotiating buying Spinneys, while preserving the Spinneys brand name. “We are still in talks, but have not yet reached a deal,” said Firas Hamdan, Commercial Manager for TSC. “TSC is looking to reach some kind of merger but nothing is concrete so far,” said Michael Wright, Spinneys CEO. “The deal has been under discussion for over a month,” according to a source close to the deal.
Sales at TSC were estimated at below $100 million (before VAT) in 2014. Spinneys had an estimated $240 million in sales (before VAT) in 2014, with growing sales and profitability, according to Wright.
The Kuwaiti TSC had entered the local market in 2008 by acquiring Monoprix and Geant Casino, a deal totaling $108 million. Spinneys began in Alexandria, Egypt as a railway provision merchant, later expanding into a grocery store that imported British goods to the Mandate for Palestine in 1924. The largest shareholder and manager of the Spinneys brand is the Dubai-based private equity firm, Abraaj Group.
TSC operates branches in Baabda, Jnah, Verdun, Zouk, Hamra, and City Mall, including TSC Plus in Ashrafieh and TSC Signature in Downtown Beirut. Spinneys operates branches in Dbayeh, Hazmieh, Jbeil, Jnah, Saida, Tripoli, Tyre, and three in Ashrafieh.
Reported by Rana Freifer
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Oct 01, 2015
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