Is Nisa being taken over by Sainsbury?

According to City reports, Sainsbury is preparing to make a £130 million takeover bid for Nisa.

The Co-op and Morrisons are also understood to have been among those showing an interest in the Scunthorpe-based wholesaler and symbol retail chain, which has undergone a chequered existence since splitting from Today’s Group in 2011.

Two years ago, Nick Read was recruited as chief executive and Robin Brown became the new chief financial officer – appointments which helped stabilise the business.

Nisa, which is in the middle of a three-year development programme, recently hired bankers to advise on its strategy.

Last year sales rose by 2.3% to £1.3 billion after adjustments were made for losing the Costcutter account. Pre-tax profit reached £7.3 million after a previous year’s loss of £2.9 million.

The number of sites serviced was approaching 3,500, with a net 160 stores joining the group.

Read, who joined the company from Thomas Cook and was previously a Tesco and Aldi director, said that full-year profit this year is forecast at £8.5 million.

Tel: Nisa Retail (01724) 282028