The Sydney Morning Herald today reports that Metcash is considering acquisitions in the newsagency channel among others.
THE food and beverages wholesaler Metcash is examining acquisitions worth up to $1 billion as it seeks to apply its expertise in distribution to industries such as pharmaceuticals, newsagencies and hardware.
Gotch could be a target given the challenges at PMP. Network could be a target given the financial challenges imposed on the business by CVC. NDD could be a target because, as the smallest of the three, they need to reinvent themselves.
Maybe Metcash is considering establishing a new newsaget-focused distribution opportunity.
I have no idea if Metcash is in discussion with any magazine distributors or whether they are planning to enter the market. While I don’t plan to let my thoughts run with a what if they buy a amagazine distributor scenario, Metcash is clearly a company for newsagents to watch.
Maybe adding a fourth distributer could cause a change in the distribution model.
A positive change is what both publishers and newsagents need.
Mark I think you are on to something here. I have had some supermarket experience – newsagents would be in for a shock if Metcash did take over a magazine distributor.
We deal with Metcash through their IGA Distribution arm. Their processes are very good. A new operator for any of the magazine distributors would be an interesting change, especially from a company such as Metcash.