July 21, 2022
Source: Reuters Photo Source: Unsplash, Ian T. British retailer Marks and Spencer (MKS.L) said on Thursday 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.
The company has been looking to overhaul operations by improving product quality and investing in technology and e-commerce to restore its balance sheet.
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). read more
Shares in M&S pared some early losses to trade down 2%. ($1 = 0.8379 pounds) Reporting by Eva Mathews in Bengaluru; Editing by Rashmi Aich
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