Grocer Metcash has agreed to acquire the 85-strong Franklins supermarket chain in New South Wales from South Africa-based Pick n Pay for about Aus$215m (£119m).

Following the acquisition, Metcash is planning to sell the stores on to the independent IGA retailers, which it supplies as a wholesaler, with the potential of lifting its annual wholesale turnover by more than Aus$500m (£276.9m).

During the transition period the stores will be managed directly by Metcash.