37 GT News shops sold for £6 million

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City newsagent GT News has been sold to the owners of Bargain Booze for £6 million.

Conviviality Retail Plc snapped up all 37 stores across Sheffield, Yorkshire and the East Midlands.

It acquired the entire share capital of GT News (Holdings)and the deal comes after the recent acquisition of Rhythm and Booze. The firm says it will help improve “store density” making logistics and marketing more efficient.

Diana Hunter, Conviviality Retail chief executive, said: “The acquisition of 37 stores from GT News is in line with our aim to grow our business into areas which are underserved by our brands.

“Yorkshire and the East Midlands are two such areas and will provide a significant growth opportunity. Customers will get even better value for money across all the brands and ranges that they currently buy as well as the additional benefit of a much stronger range of beers, wines and spirits.”

For the year ended June 30, 2014, GT News generated revenues of £57m and profit after tax of £400,000.

It had net assets of £2m, of which £1.8m related to property.