Wholesale grocery groups AND-Keencost and National Wholesale have merged, creating a company with a turnover of about £500 million (€634.87 million).

Known as Stonehouse, the merged firm will be made up of 39 companies and 65 distribution centres throughout the State. It will claim about 25 per cent of the wholesale grocery market.

Keencost, which owns the Lifestyle brand, had nine wholesale companies and 28 distribution centres before the deal. National had 30 companies and 37 distribution centres, using the Homestead brand.