THE deal announced yesterday in which Hove-based wholesale grocer Palmer & Harvey McLane has taken over the goodwill and assets of industry giant Booker Wholesale Foods marks a massive expansion for the Sussex company.

But a spokesman at Palmer & Harvey McLane, last year named as the UK's second largest private company, said it was too early to talk about any staff increases at the Hove operation which currently employs 300 people.

The purchase includes deliveries to the Mace stores chain.

Bill Ellis, Palmer & Harvey McLane's independent sales director, said: "The offer to put Booker Wholesale Foods on the market came as no surprise to the industry.

"When we looked at its potential, we recognised that the addition of the turnover of the Mace stores alone to our portfolio would help us in our plans to strengthen and consolidate the convenience sector."

He said that many of the Mace stores are trading at more than £1 million a year which presented a very attractive proposition.

Across the UK the Hove company now employs 3,100 staff, many of them shareholders in the firm, which makes 20,000 daily deliveries to corner shops, garage forecourts and convenience stores. Last year it had a turnover of £2.4 billion.

Mr Ellis said: "We have a very powerful buying capacity backed by a tried and tested nationwide distribution system."

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