Metcash Peries Group acquisition: binding agreement for $80 – $85 million
Metcash Limited (ASX: MTS) has exercised its right following receipt of a First Rights Notice and entered into a binding business sale agreement to acquire the Peries Group, a leading Queensland-based food business. The Metcash Peries Group acquisition was announced on 19 October 2026.
The Peries Group operates 15 medium and large-format IGA supermarkets and employs around 1,000 people. Metcash estimates the purchase price at between $80 – $85 million, funded through debt facilities.
The transaction is expected to be marginally earnings per share accretive. It also involves a business that is an existing wholesale customer of Metcash.
Doug Jones, Metcash Group CEO
“…its acquisition is consistent with our strategy of protecting, growing and strengthening the independent IGA grocery network… The decision to exercise this First Right was taken with regard to the longer-term strength of the independent network, as well as delivering returns for shareholders.”
When big ASX news breaks, our subscribers know first
Inside the Peries Group: 15 Queensland IGA stores and $264 million in sales
The Peries Group’s key figures, as disclosed by Metcash, are set out below.
- 15 medium and large-format IGA supermarkets across South-East, Central, Far North and Wide Bay-Burnett regions of Queensland
- Approximately $264 million in retail sales in FY26
- Metcash wholesale sales to the Peries Group of approximately $150 million in the same year
- Around 1,000 employees
FY26 is the 12 months to 30 June 2026 and the figures are unaudited.
According to Metcash, the Peries Group has meaningful retail scale, strong regional market positions and an established operating platform. Its store network is concentrated in regional Queensland markets where IGA has a very strong customer proposition and, in several communities, is the leading or only full-line grocery offering.
For investors, the acquisition involves a business to which Metcash’s wholesale sales were approximately $150 million in FY26.
Strategic rationale: strengthening IGA in Queensland
Metcash stated the acquisition is expected to help protect, grow and strengthen the IGA network in the strategically important Queensland market. According to the company, Queensland has delivered stronger retail and wholesale growth than most other states over the past three years.
Metcash currently holds a 45% share of the Queensland-based Cornetts Group, which operates 35 supermarkets.
The Peries deal sits within Metcash’s broader supermarket ownership strategy, which targets owning 25-30% of IGA network revenue over the long term, supported by group leverage of 1.0x and $967 million in undrawn facilities.
How the model and the First Rights Notice work
Metcash is a wholesaler that supplies independently owned IGA stores, so the retail operators sit within the IGA network rather than inside Metcash itself. Owning or retaining stores can help keep that wholesale volume within the network, which is relevant given the ~$150 million of wholesale sales to the Peries Group.
A First Rights Notice is a notice given under existing contractual arrangements. Here, Metcash received one from Peries following Peries’ decision to sell the business. Metcash’s acceptance of the notice triggered the immediate entry into a binding business sale agreement.
Retaining stores within the IGA network
Metcash’s primary objective is to retain the stores within, and for the benefit of, the IGA network. It will actively assess the optimal long-term ownership structure for the stores, which may include divestments or joint venture arrangements with independent operators, consistent with prior practice.
Transaction details and timeline
The table below summarises the terms disclosed in the announcement.
| Item | Detail |
|---|---|
| Purchase price | $80 – $85 million (Metcash estimate) |
| Funding | Debt facilities |
| EPS impact | Expected to be marginally earnings per share accretive |
| Anticipated completion | End of April / early May 2027 |
| Next update | 1H27 financial results materials, 7 December 2026 |
The purchase price will be calculated in accordance with a fixed formulae in the Business Sale Agreement based on a multiple of EBITDA (pre-AASB16). It excludes stock, employee entitlements and stamp duty.
Completion remains subject to customary conditions, including lease assignments and approval from the Australian Competition and Consumer Commission (ACCC).
The path to completion runs through four steps:
- Metcash receives the First Rights Notice from Peries.
- Metcash exercises its right and enters into a binding business sale agreement.
- The customary conditions are satisfied, including lease assignments and ACCC approval.
- Completion, anticipated by end of April / early May 2027.
Further details will be provided with Metcash’s 1H27 financial results materials, scheduled for release on 7 December 2026. That release is the next scheduled update for shareholders, as the price is an estimate and the long-term ownership structure for the stores is still to be assessed.
Stay Ahead on Consumer Stocks News Before the Market Moves
Get FREE breaking ASX news delivered to your inbox within minutes of release, complete with in-depth analysis. Join 20,000+ investors already receiving real-time alerts from Big News Blast. Click the “Free Alerts” button to be first to know when the next market-moving consumer announcement lands.