Bidcorp has entered into a contract for the disposal of its Best Food Logistics business to Tesco subsidiary Booker Group.
The transaction is subject to approval from the Competition and Market Authority in the UK, which is expected to take several months.
Bidcorp has been exiting low margin logistics activities globally where it does not fit into its model for its foodservice businesses. The sale of Best Food Logistics – which distributes food to customers including Pret a Manger, KFC and Burger King – has been proposed since April.
In interim results for Tesco released today, it said that the acquisition of the assets and operations of Best Food Logistics would be made for a nominal consideration, and would add a further £1.1 billion in additional foodservice sales.
Tesco also said that it would be building on its £700 million of additional sales to date since its merger with Booker.
By Christopher Walton