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April 6, 2018
Tesco will acquire the U.K.-based food wholesaler Booker Group for approximately £3.7 billion.
The merger will aim to bring a host of benefits to consumers, independent retailers, caterers, small businesses, suppliers and colleagues, as well as deliver a significant value to its shareholders. It will also be well placed to serve the U.K.’s “in-home” food market as well as the fast-growing “out-of-home” food market.
By merging Tesco and Booker’s retail and wholesale experience, supply chain and digital capabilities, the combined group will be able to provide more choices, quality, price and service in the food market, while also improving efficiency and reducing food waste.
Under the terms of the deal, each Booker shareholder will receive 0.861 Tesco shares and 42.6 pence in cash.
“Tesco has made significant progress in turning around our U.K. retail business,” says Dave Lewis, chief executive officer, Tesco. “This merger with Booker will further enhance Tesco’s growth prospects by creating the U.K.’s leading food business with combined expertise in retail, wholesale, supply chain and digital. Wherever food is prepared and eaten–‘in home’ or ‘out of home’–we will meet this opportunity with the widest choice and best service available.”
Furthermore, Booker’s CEO Charles Wilson will join the combined group’s board and executive committee. Booker’s chairman, Stewart Gilliland, will also join the group’s board.
“Booker is committed to improving choice, prices and service for the independent retailers, caterers and small businesses that we are proud to serve,” says Wilson. “We believe that joining forces with Tesco offers the potential to bring major benefits to end consumers, our customers, suppliers, colleagues and shareholders.”
Read more about:Tesco
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