The owner of Costcutter has agreed the sale of the convenience store chain to Bestway Wholesale, the UK’s largest independent wholesalers.

Bibby Line Group said it had agreed to sell Costcutter Supermarkets Group (CSG) to Bestway Wholesale, with the deal expected to be completed during the first quarter of 2021.

CSG will continue to operate as before under the new ownership, and approximately 1,500 stores branded under Costcutter, Mace, Supershop, Kwiksave and Simply Fresh will join brands Bargain Booze, Wine Rack and Central Convenience under Bestway Wholesale.

Bibby Line Group said CSG’s agreed sale price will remain “undisclosed”, adding that its sales rose by 10% to £426 million over 2019.

CSG employs around 500 people.

Chief executive of Bibby Line Group, John Cresswell, said the deal was “positive news” for the company and would help it secure future investments.

He said: “Over the last two years, CSG has transformed itself into a profitable and much stronger business, and I’d like to thank the team for their unstinting commitment and passion for helping independent retailers thrive.

“We hope CSG will continue to prosper and grow as it becomes part of a larger business with deep retail expertise.”

Dawood Pervez, managing director of Bestway Wholesale, described Costcutter as a “great brand with a long heritage and a history of success”.

He said: “Clearly, there will be benefits of joining forces for our retailers, for shoppers, and for suppliers.”

Completion of the sale is conditional on the Financial Control Authority’s approval and Bibby Line Group will continue operating CSG until then.