Metcash has exercised its first right to acquire Queensland’s Peries Group in a debt-funded deal valued at an estimated $80 million to $85 million. The transaction would add 15 IGA supermarkets and around $264 million in annual retail sales, subject to ACCC approval and other conditions.
- 15 IGA supermarkets across regional Queensland
- Estimated purchase price of $80 million to $85 million, excluding stock and other costs
- Deal to be funded through debt and expected to be marginally EPS accretive
- Completion targeted for late April or early May 2027
- Metcash may later pursue divestments or joint ventures for some stores
Metcash secures path to 15 Queensland supermarkets
Metcash Limited (ASX:MTS) has exercised its first right to acquire the Peries Group, securing a binding agreement for a 15-store IGA supermarket network spread across South-East, Central, Far North and Wide Bay-Burnett Queensland.
The business generated approximately $264 million in retail sales in FY26 and employs around 1,000 people, according to Metcash. Its stores also generated roughly $150 million in wholesale sales for Metcash over the same 12-month period to 30 June 2026, giving the transaction significance beyond the supermarket assets themselves.
Debt-funded deal targets regional IGA growth
Metcash estimates the purchase price at between $80 million and $85 million, funded through debt facilities. That estimate is based on a fixed EBITDA multiple and excludes stock, employee entitlements and stamp duty. The company expects the acquisition to be marginally earnings per share accretive, although the final consideration and contribution to earnings remain to be determined.
The company said the deal is intended to protect and strengthen the IGA network in Queensland, a market it described as having delivered stronger retail and wholesale growth than most other states over the past three years. The stores are concentrated in regional communities where IGA is, in some cases, the leading or only full-line grocery offering.
Metcash already owns 45% of the Cornetts Group, which operates 35 Queensland supermarkets. The Peries acquisition would therefore deepen the group’s exposure to the state, while adding a separate regional network with its own operating platform and market positions.
Store ownership remains an open question
Metcash’s stated priority is to retain the stores within the IGA network, but it will assess the best long-term ownership structure. That could include selling some stores or establishing joint ventures with independent operators, meaning the announced transaction does not necessarily imply permanent ownership of all 15 supermarkets by Metcash.
Completion is expected by late April or early May 2027, subject to customary conditions including lease assignments and Australian Competition and Consumer Commission approval. Metcash says it will provide further transaction detail alongside its first-half FY27 financial results, scheduled for 7 December 2026. Until then, the key variables are the final purchase price, funding impact and which stores, if any, ultimately move into divestment or joint-venture structures.
Bottom Line?
The deal adds meaningful Queensland scale, but its eventual earnings benefit will depend on final consideration, regulatory clearance and how Metcash allocates ownership across the 15 stores.
Questions in the middle?
- Will the ACCC and lease assignment process allow completion on the targeted timetable?
- What will the final purchase price be once stock, employee entitlements and stamp duty are included?
- How many stores will Metcash ultimately own, divest or place into joint ventures with independent operators?