Metcash Buys Queensland IGA Operator Peries Group for up to $85 Million

Metcash agreed to acquire Queensland grocery operator Peries Group for an estimated $80 million to $85 million.

The deal secures 15 medium- and large-format IGA supermarkets across regional Queensland. Those stores generated approximately $264 million in retail sales in the 2026 financial year.

Terms and structure of the transaction

Exercising a contractual right of first refusal, Metcash stepped in after Peries Group put the business up for sale. A fixed multiple of earnings before interest, tax, depreciation and amortisation under pre-AASB16 accounting rules will determine the final price. That calculation excludes stock, employee entitlements and stamp duty.

Existing debt facilities will fund the purchase. Marginal earnings per share accretion is expected once the transaction closes.

Around 1,000 workers are employed across South-East, Central, Far North and Wide Bay-Burnett districts. Metcash already supplied the network. It booked approximately $150 million in wholesale sales to Peries stores during the 12 months ended 30 June 2026.

Regional grocery consolidation

Buying Peries prevents rival supermarket operators from peeling away a major independent wholesale customer in Queensland. Regional store networks provide steady wholesale volumes that Metcash cannot afford to lose to corporate chains.

Direct ownership gives the wholesaler options to restructure store holdings down the track. It plans to review the long-term model for the 15 sites, including potential joint ventures or re-sales to independent grocers.

Expanding Queensland footprint

Equity exposure in Queensland retail operations expands alongside Metcash’s existing 45 per cent interest in Cornetts Group, which runs 35 supermarkets across the state. Queensland grocery sales have outpaced most other Australian states over the past three years at retail and wholesale levels.

Regional independent operators frequently serve as the sole full-line grocery destination in their towns. Keeping those locations under the IGA banner protects distribution routes running from Metcash distribution centres to remote retail corridors.

“The Peries Group is a high-quality independent business, and its acquisition is consistent with our strategy of protecting, growing and strengthening the independent IGA grocery network. We believe this transaction will enhance our Queensland presence and create additional opportunities for Metcash and the wider IGA 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.”

Clearance timeline and financial disclosures

Settlement is scheduled for late April or early May 2027. Completion requires lease assignments across the 15 locations and clearance from the Australian Competition and Consumer Commission.

Briefing on the transaction is scheduled for 7 December 2026, when Metcash releases its first-half financial results.