Booker and Tesco in £3.7bn deal
Midlands food wholesale giant Booker has been bought by Tesco for £3.7bn.
In what Tesco is calling a “merger”, it will pay 205.3p per Booker share, meaning that each Booker shareholder will receive 0.861 Tesco share and 42.6p in cash. Booker shareholders will own around 16% of the combined business.
Tesco says the move will save the new firm around £200m a year after three year. The deal will take three years to complete, and that it will ” delight consumers with better availability of quality food at attractive prices across retail and eating out locations”.
Dave Lewis, chief executive officer of Tesco said: “Tesco has made significant progress in turning around our UK retail business. This Merger with Booker will further enhance Tesco’s growth prospects by creating the UK’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.”
Charles Wilson, chief executive officer of Wellingborough-based Booker said: “Booker is committed to improving choice, prices and service for the independent retailers, caterers and small businesses that we are proud to serve. We believe that joining forces with Tesco offers the potential to bring major benefits to end consumers, our customers, suppliers, colleagues and shareholders.”
Charles Wilson, Booker’s chief executive officer and Stewart Gilliland, Booker’s chairman, will join the new firm’s Board. Wilson will also join the company’s Executive Committee.
