THE WALL STREET JOURNAL: Sainsbury Buys Second Convenience Store Chain (ShellNews.net)

DOW JONES NEWSWIRES

August 16, 2004 2:17 a.m.

Edited Press Release

LONDON -- J Sainsbury said Monday that it has acquired Jacksons Stores and its wholly owned subsidiary Jacksons Stores 2002.

For the financial year ended Apr. 24, 2004, Jacksons' turnover was GBP143 million. The value of net assets acquired were GBP25.5 million at that date.

This acquisition has been completed on an unconditional basis, Sainsbury said.

Jacksons is widely regarded within the convenience store sector. The stores are on average 1,875 sq ft and predominately in neighbourhood locations.

In a similar approach to the one pursued at Bells Stores, where the first five jointly branded 'Sainsbury's at Bells' stores are delivering positive results, the Jacksons stores will operate as a separate business run by the current strong management team from Jacksons' support centre.

Jacksons' supply chain arrangements will remain in place as it benefits from its own warehouse and distribution facilities and Sainsbury's will act as a supplier to their depot.

In its convenience store portfolio, Sainsbury's currently has 67 Sainsbury's Locals, 54 Bells Stores, and a further 22 in partnership with Shell U.K. Ltd. The acquisition of Jacksons results in excess of 250 convenience stores.