Marks & Spencer seals the purchase of the logistics service provider Gist

Marks & Spencer has struck a deal worth up to £255m (€300m) to buy British logistics service provider Gist in a bid to gain better control of its supply chain.

The food and clothing giant has agreed to buy the company, which is a logistics operator of M&S Food, from Storeshield, a subsidiary of BOC Group.

M&S will initially pay £145m for the deal, followed by a further £85m plus interest on the third anniversary of the completion of the move.

It will also have to pay up to £25m more plus interest ‘under certain conditions’.

The retailer said Gist provides the majority of M&S Food’s logistics services through a network of eight primary and ten secondary distribution centers in the UK and Ireland.

Stuart Machin, managing director of the retailer, said: “M&S has been locked into a more expensive legacy contract which is limiting both our incentive to invest and our growth.

“The last two years have shown what can be achieved by working together with our partners at Gist.

“This has given me confidence that now is the time to take action and remove an impediment to our growth.

“We have therefore acted decisively to acquire Gist and take control of our food supply chain for the first time in our history.”

The announcement came hours after the retailer confirmed its chief financial officer will be leaving to join Associated British Foods (ABF), the consumer group behind Primark.

Eoin Tonge is set to take over from ABF’s retiring Chief Financial Officer John Bason “by February 2023 at the latest”.

It comes just weeks after M&S confirmed that Mr Tonge would be taking on new responsibilities alongside his role in finance as part of a wider restructuring of leadership at M&S.

The company said it was working on his replacement.

https://www.independent.ie/business/world/marks-and-spencer-seals-deal-to-buy-logistics-services-provider-gist-41858929.html Marks & Spencer seals the purchase of the logistics service provider Gist

Fry Electronics Team

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