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Westgate Department Stores, which has operations across the East Midlands, has been sold by Anglia Co-operative Society for £7.5m to department store operator JE Beale. As a result of the deal, Beales will operate from 19 of the 23 stores in the Westgate group. The deal was advised by Grant Thornton's East Midlands team.

Westgate operates stores in Spalding and Mansfield.

The arrangement does not include the Westgate department stores in Scunthorpe, Hartlepool, Blyth and March which will remain with Anglia Co-operative (ARCS).

The deal is expected to complete by the end of May and will make Westgate part of one of the largest national department store groups in the UK.

Anglia Co-operative chief executive John Chillcott said: "Combining the respective store portfolios into one enlarged group makes strong commercial sense for both parties and improves job security and opportunities for the 900 staff employed in the Westgate stores covered by the deal."

Beales chief executive Tony Brown added: "We are very pleased that we have been able to reach conditional agreement with ARCS for the acquisition of these 19 stores. This transaction is in line with our strategy to grow the group, secures the future of the acquired stores and marks a step change in the development of Beales."

Beales operated 13 locations nationwide prior to this arrangement with Anglia Co-operative.

Anglia Co-operative said it will retain a "significant investment" interest in the enlarged Beales department store group.

Mustafa Abdulhusein, head of Grant Thornton’s East Midlands corporate finance team,advised the Anglia Regional Co-operative Society, which is headquartered in Peterborough. The team also included associate director Ivan Trevor and manager Richard Blunden.

Abdulhusein said: “I am delighted to have assisted Anglia on this significant transaction. The deal makes strong commercial sense for both parties, enabling Beale to pursue its growth strategy whilst allowing Anglia to focus on its core businesses.”