Majestic buys Lay & Wheeler

Published: 07 March, 2009

Majestic has made a surprise deviation from its usual policy of organic growth with the takeover of Lay & Wheeler.

Lay & Wheeler, one of the oldest names in the British wine trade, has been family owned since 1854. Majestic expects to pay a maximum of £6 million for the Suffolk-based merchant once the deal is complete.

That figure includes around £1 million in net debt. Lay & Wheeler made an aggregate profit before tax of £500,000 in the year to March 2008 and Majestic said it expected the acquisition to be earnings enhancing in its first full year.

The purchase is being funded by a Barclays loan.

It is not clear whether Majestic, which has 147 stores, will continue to use the Lay & Wheeler name or whether it is more interested in the company's expertise in fine wine sourcing, en primeur sales, portfolio management, cellarage and broking.

Fine wine has been an increasingly important element of Majestic's business in recent years.

Majestic chief executive Steve Lewis said: "Given the clear and continuing appetite of our customers for fine wine, Lay & Wheeler is an extremely good fit with Majestic.

"This acquisition will allow us to greatly extend this important offering and help continue the Majestic growth story."

Printer friendly version