Marks and Spencer is set to acquire Gist as it looks to grow its food supply chain.
The acquisition is expected to be EPS accretive in the next year and accelerates M&S’s multi-year plan to modernise its Food supply chain network to support growth.
Gist provides the majority of M&S Food logistics services via a network of 8 primary and 10 secondary distribution centres located across the UK and the Republic of Ireland, including a number of freehold warehouses.
Under the transaction, M&S is acquiring the entire share capital of Gist for an initial consideration of £145m in cash. A further amount of £85m plus interest will be payable in cash from the proceeds of the intended onward disposal of freehold properties or, at the latest, on the third anniversary of completion.
Stuart Machin, Chief Executive, said: “M&S has been tied to a higher cost legacy contract, limiting both our incentive to invest and our growth. The last two years have shown what can be achieved by working collaboratively alongside our partners at Gist.”