British retailer Marks and Spencer (MKS.L) said it would acquire its key logistics services provider Gist Ltd for 145 million pounds ($173.06 million); in an all-cash deal as it seeks to take control of its food supply chain.
The deal, which is expected to add to the company’s profits next year; will help M&S navigate supply chain snags and optimize costs at a time inflation has been soaring.
M&S has been tied to a higher cost legacy contract, limiting both our incentive to invest and our growth. We have therefore acted decisively to acquire Gist”. Chief Executive Officer Stuart Machin said.
M&S earlier in the day said its finance chief, Eoin Tonge, during whose term shares jumped 44%, will exit the company to join Primark-owner Associated British Foods (ABF.L). Shares in M&S pared some early losses to trade down 2%.
