Wholesaler Metcash has entered a trading halt after confirming to the Australian Financial Review it is in talks with Quadrant to acquire the Superior Food Group.
Metcash, the parent of supermarket brands IGA and Foodland and convenience brand Campbells/C-Store, also owns liquor store brands Cellarbrations, IGA Liquor, and The Bottle-O, and hardware store brands Home Hardware, Total Tools, and Hardings Hardware.
This time, it is seeking to venture into supplying ingredients, packaging and cleaning items to hospitality businesses with the potential acquisition of Superior Food Group, which the AFR reported to be valued at about $500 million.
“Metcash confirms that it is in discussions with the vendors concerning the potential acquisition of Superior Food Group, however, at this stage the discussions are incomplete and there is no certainty that they will lead to a transaction,” Metcash told the AFR.
The report added that fund managers were already preparing to be asked for extra cash by Metcash.
Last year, Metcash took full ownership of Total Tools and is expected to open 10 more of the hardware stores per year in the foreseeable future.