The convenience retail chain McColl’s has announced the conditional acquisition of 298 convenience stores from the Co-operative Group for £117m in cash.

McColl’s chief executive Jonathan Miller commented: "I am delighted to announce the acquisition of 298 quality convenience stores in a transformational deal for McColl’s. This opportunity substantially accelerates our growth strategy and expands our neighbourhood presence for the benefit of our customers.

“These stores are profitable, well invested, and the perfect size for our operating model. We expect the transaction to be significantly earnings enhancing for our shareholders.

“I look forward to welcoming all of our new colleagues to the business.”

The portfolio comprises 298 convenience stores, located in an extensive range of residential areas throughout the United Kingdom. The stores have an average store size of 1,727 sq ft. This is consistent with the size of stores recently acquired by the group, including a number of stores previously acquired from the Co-op, and the group’s existing convenience stores.

McColl’s expects initial acquisition of stores in the portfolio to occur in January 2017. It will be completed in batches with the transfer of up to 20 stores a week over a period of time, anticipated to be approximately five months.

McColl’s operates more than 1,350 Uk stores, including seven forecourts, five of which are Gulf-branded.